HMRC Late Payment Interest Rates to Increase from 6 April 2025
Posted on 31st March 2025
From 6 April 2025, HMRC will increase the interest rates on late payments. This change will affect businesses across the UK and it's important for companies to be aware of these adjustments.he growing need for strategic tax management.
The new rates will apply to any late payments of tax, including VAT, PAYE and Corporation Tax.
The increase in rates is intended to reflect changes in the Bank of England base rate and inflation.
Businesses that are behind on their payments will be charged a higher interest rate, which may lead to additional costs. It’s essential for business owners to ensure they stay on top of their tax obligations to avoid these additional charges. If you're unsure of what to do next, please give us a call.
More information:
The updated interest rates will be:
- Late payment interest: Set at a rate that is higher than the current level.
- Late payment penalties: These may also increase in certain cases.
While the rise in interest rates might not have an immediate effect on all businesses, it’s crucial to stay informed, particularly if your business has a history of late payments. Early preparation can help reduce the financial impact - and we're here to help.
For more detailed information, read the full announcement from the official government site here.
If you'd like a friendly chat, please pick up the phone and call Tom for more information.
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