HMRC Publish New Interest Rates on Late Tax

Following the recent announcement by HMRC that they would increase interest rates on late paid tax the new rates have been confirmed.

From 21 August 2018 the rate is 3.25% (up from 3.0%) and applies to the following taxes:

• income tax,
• National Insurance contributions,
• capital gains tax,
• stamp duty land tax, stamp duty and stamp duty reserve tax,
• corporation tax pay and file; corporation tax pre-pay and file and
• petroleum revenue tax; corporation tax self-assessment (from normal due date);
• inheritance tax, capital transfer tax and estate duty;
• Income tax (IT-CP) and other duties attracting section 87 interest for accounting periods ending on or after 1 July 1999;
• default and statutory interest relating to VAT, air passenger duty, insurance premium tax, environmental taxes and customs duty;
• interest charged on judgement debt taxation matters.​

The rate of interest on corporation tax due in instalment payments has increased to 1.75% (previously 1.5%) from 13 August 2018.

There has been no change in the rate of interest of 0.5% on repayments due back from HMRC.