LATE PAYMENT - 11.11.2022 Further increase to HMRC late payment interest

LATE PAYMENT?-??11.11.2022

Further increase to HMRC late payment interest

Late payment interest rates will increase again in November because of a further hike in the Bank of England base rate. Will you be affected?

As HMRC’s late payment and repayment interest rates are linked to the base rate, they are also set to increase. From 14 November 2022 the following rates will apply:

• Late corporation tax paid quarterly - 4%
• Interest on overpaid corporation tax instalments - 2.75%

From 22 November, the rates for other taxes will apply:

• Late payment interest - 5.5%
• Interest on overpaid tax - 2%

If your 2021/22 tax return is outstanding you should calculate your tax liability as soon as possible to ensure you can meet the payment deadline, to avoid (or minimise) interest charges.

Courtesy of Tax Essentials for Advisors