{"id":22385,"date":"2022-09-08T14:03:16","date_gmt":"2022-09-08T14:03:16","guid":{"rendered":"https:\/\/smh.group\/?p=22385"},"modified":"2023-02-15T13:39:47","modified_gmt":"2023-02-15T13:39:47","slug":"interest-charges-for-late-payments-have-increased-sixfold","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/interest-charges-for-late-payments-have-increased-sixfold\/","title":{"rendered":"Interest charges for late payments have increased sixfold"},"content":{"rendered":"

HMRC late payment interest rates have now been raised six times during 2022 \u2013 from 2.6% at the start of the year to a current rate of 4.25%. However, at least there\u2019s some good news, with an uplift to the tax repayment rate.<\/strong><\/p>\n

The charge for late payment is set at base plus 2.5%. So, with the Bank of England base rate going up from 1.25% to 1.75%, HMRC\u2019s late payment rate has correspondingly gone up from 3.75% to 4.25%. The increased rate applies from 23 August and covers almost all taxes and duties \u2013 the exception being quarterly instalment payments of corporation tax, for which the rate has risen from 2.25% to 2.75% since 15 August.<\/p>\n

Unfortunately, current predictions have the base rate peaking at 2.25% or 2.5% by the end of 2022, so further late payment interest rate hikes should be expected.<\/p>\n

Get up to date<\/strong><\/h2>\n

The latest late payment rate increase will hit taxpayers who are not up to date with their tax payments. Many will be struggling to pay outstanding taxes -\u2013particularly the latest self-assessment payment on account due on 31 July \u2013 against the backdrop of rising living costs.<\/p>\n