As had been expected following the Bank of England’s decision to cut the bank base rate to 4.75% HMRC have now updated their interest rates which apply for late payments and overpayments of most taxes.
For most taxes and payments the late-payment interest rate is 7.25% and the repayment rate 3.75% with effect from 26 November 2024.
Interest charged on underpaid quarterly instalment payments of corporation tax is 5.75% and interest paid on overpaid quarterly instalments is 4.5% with effect from 18 November 2024.
At Autumn Budget 2024 the UK government announced its intention to change the formula which provides the method of calculation for the late-payment interest rate increasing the amount by 1.5 percentage points from 6 April 2025 – to ‘encourage taxpayers to pay tax on time’.
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As had been expected following the Bank of England’s decision to cut the bank base rate to 4.75% HMRC have now updated their interest rates which apply for late payments and overpayments of most taxes.
For most taxes and payments the late-payment interest rate is 7.25% and the repayment rate 3.75% with effect from 26 November 2024.
Interest charged on underpaid quarterly instalment payments of corporation tax is 5.75% and interest paid on overpaid quarterly instalments is 4.5% with effect from 18 November 2024.
At Autumn Budget 2024 the UK government announced its intention to change the formula which provides the method of calculation for the late-payment interest rate increasing the amount by 1.5 percentage points from 6 April 2025 – to ‘encourage taxpayers to pay tax on time’.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
