HMRC has increased the late payment interest applied to the main taxes and duties to 5.5%.
These changes will come into effect on 22 November 2022 for Corporation Tax non-quarterly instalment payments, Income Tax, National Insurance contributions, Capital Gains Tax, Stamp Duty Land Tax, Stamp Duty Reserve Tax, Inheritance Tax, Capital Transfer Tax and Estate Duty.
In addition, the interest charged on underpaid quarterly instalment payments will increase from 3.25% to 4% with effect from 14 November 2022.
The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments rises to 2.75% from 2%.
The repayment interest rate will also increase from 1.25% to 2% from 11 October 2022.
These increases have been instigated by the Bank of England base rate increase from 2.25% to 3% on 3 November 2022.
If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact email@example.com or your usual A.C.T. contact.