22 November 2024
Due to the recent change in Bank Rate from the Bank of England, HM Revenue and Customs’ (HMRC’s) interest rates will be amended from 26 November 2024.
The late payment interest rate is set at the bank rate plus 2.5 percentage points, however, from April 2025 this is set to change to bank rate plus 4 percentage points. The budget gave the following details:
Changing late payment interest rates on unpaid tax liabilities – The government will increase the late payment interest rate charged by HMRC on unpaid tax liabilities by 1.5 percentage points. This measure will take effect from 6 April 2025.
If current bank rates hold this rate will increase up to 8.75% from April 2025. The repayment percentage calculation will remain unchanged.
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