The UK tax authority, HM Revenue & Customs (HMRC), has revised its interest rates for late payments.
From 13 April 2023, the late payment interest rate will rise to 6.75%, the highest level since January 2008. This comes after the Bank of England base rate increased to 4.25% on 23 March 2023. The revised rates will apply to the main taxes and duties charged and paid by HMRC.
Late payment interest is charged on late tax bills for income tax, National Insurance contributions, capital gain tax, stamp duty land tax, stamp duty, and stamp duty reserve tax. The corporation tax pay and file rate will also increase to 6.75%. It is important to note that these rates apply to both individuals and businesses.
This increase in interest rates means that taxpayers who are late in paying their tax bills will face higher penalties. It is therefore important for individuals and businesses to ensure that they pay their taxes on time. Failure to pay on time could result in a penalty and interest charges.
If you are struggling to pay your taxes on time, Max Pro Accountants are here to help. Our experienced team of accountants and tax advisers can assist you with all your tax-related matters, including HMRC issues. We are committed to helping you stay compliant with tax regulations while also minimising your tax liability.
If you have any questions or concerns about HMRC and tax-related matters, please do not hesitate to contact us. You can reach us at 020 8168 1680 or info@maxproaccountants.co.uk. We are always ready to help you.