The rate of interest charged on late payments by HM Revenue & Customs (HMRC) has increased, it has been announced.
It comes after the Bank of England (BoE) increased the base rate from 0.1 per cent to 0.25 per cent on 16 December last year.
According to the tax authority, the late payment interest rate for quarterly instalment payments has been increased from 1.1 per cent to 1.25 per cent from 27 December 2021, while the late payment interest rate for all other payments has increased from 2.6 per cent to 2.75 per cent from 04 January 2022.
This applies to late payments of Income Tax, National Insurance contributions, Capital Gain Tax, Stamp Duty Land Tax, Stamp Duty and Stamp Duty Reserve Tax, Corporation Tax, Inheritance Tax, and judgement debt taxation matters, among others.
The rate of interest paid by HMRC on repayments, meanwhile, remains unchanged at 0.5 per cent, as this rate is calculated as the higher of 0.5 per cent or the BoE base rate minus one.
Commenting on the changes, HMRC said: “As a consequence of the change in the base rate, HMRC interest rates for late payments will increase.
“These changes will come into effect on December 27, 2021 for quarterly instalment payments and January 4, 2022 for non-quarterly instalments payments. Repayment interest rates remain unchanged.”
More information can be found by clicking the following links:
The new rates come ahead of the 31 January 2022 Self Assessment deadline.
For help and advice with related matters, please get in touch with our team today.
Our BLOG
Gifts out of surplus income – A smart way to reduce Inheritance Tax
TESTIMONIALS
The staff at CST are always very friendly and approachable.… Read more “Mr JD Dolling, SW Heating Equipment Ltd”
We have been with CST for more than seven years… Read more “Doris Francis, Engineering Services (Bridgend) Ltd”
Our business has been handled by CST for many, many… Read more “Mr & Mrs Rise”
I moved my business to Clay Shaw Thomas because I… Read more “Sandra Wilkinson of Sage Marketing”
The audit was well planned and executed efficiently, with minimum… Read more “GE Carpentry”
Privately and within the company Clay Shaw Thomas provides a… Read more “Seashore Enterprises”
I am very happy with the service from CST. An… Read more “Mr Atkinson “
The family connection with CST goes back many years and… Read more “Dr Jones”
CST are very efficient, courteous and proactive when dealing with… Read more “Mr CMG Adams”
I have been a client for over twenty years and… Read more “Mr J T Wall”
Always one step ahead of the game, CST have helped… Read more “Mr RT Evans”
CST Staff always give unbiased advice in a clear and… Read more “Mr L Branfield”
It has been a professional pleasure working with CST, they… Read more “Mr P Jenkins”
SUBSCRIBE to our list
If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email tellmemore@clayshawthomas.com.