HMRC to reduce late payment interest
Late payment interest rates on underpaid taxes will soon decrease again due to the recent reduction in the Bank of England’s base rate. What are the new charges?
On 7 November 2024 an announcement confirmed a reduction in the Bank of England base rate to 4.75% from 5.0%. As HMRC’s late payment and repayment interest rates are linked to the base rate, it has confirmed that they will also come down.
From 18 November 2024 the following rates will apply:
- Late corporation tax paid quarterly – 5.75%
- Interest on overpaid corporation tax – 4.5%
From 26 November, the rates for other taxes will be:
- Late payment interest – 6.75%
- Interest on overpaid tax – 3.75%
Penalty interest can be avoided by paying your tax bill on time. As an added bonus to anyone expecting to receive interest on overpaid taxes, note that such interest is free from income tax.
Related Topics
-
Winter fuel payments to be clawed back via tax system
A government U-turn on the winter fuel payment was announced this week, with a new means-tested threshold. How will this work in practice?
-
Latest advisory fuel rates published
The amount that employers can reimburse staff for business travel in company cars changes from 1 June 2025. What are the new rates?
-
P11Ds - don't forget beneficial loans
Ahead of the P11D filing deadline on 6 July, HMRC has issued a reminder to employers about beneficial loans. What’s the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.