Further increase to HMRC late payment interest
Late payment interest rates will increase again in November because of a further increase in the Bank of England’s base rate. Will you be affected?
As HMRC’s late payment and repayment interest rates are linked to the base rate, they are also set to increase.
From 14 November 2022 the following rates will apply:
- Late corporation tax paid quarterly – 4%
- Interest on overpaid corporation tax instalments – 2.75%
From 22 November, the rates for other taxes will apply:
- Late payment interest – 5.5%
- Interest on overpaid tax – 2%
If your 2021/22 tax return is outstanding you should calculate your tax liability as soon as possible to ensure you can meet the payment deadline, to avoid (or minimise) interest charges.
Related Topics
-
Review how much VAT charged on sales?
A recent Tribunal case ruled that HMRC’s logic was flawed in dealing with a “what is the supply” challenge. Does this mean you should check that you are charging VAT correctly on your sales if there could be doubt about what you are selling?
-
Are buy-to-let companies worth the hype?
There’s no doubt that landlords have been on the receiving end of multiple tax hikes in recent years. So called “property experts” will tell you that the best tax-saving strategy is to operate through a company. Are they right?
-
Electronic VAT return