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Interest rates for late and early payments.
HMRC has increased the late payment interest rate to 3.25% from 21 August. The repayment interest rate – 0.5% since 29 September 2009 – remains the same. These rates apply to the main taxes and duties, including income tax; National Insurance; capital gains tax; stamp taxes; corporation tax; petroleum revenue tax; default and statutory interest relating to VAT, air passenger duty, insurance premium tax, environmental taxes and customs duty; and interest charged on judgement debt taxation matters.
For inheritance tax, the rate for late payment is 3.25% but repayment interest will be paid at 0.75%.
Interest charged on corporation tax underpaid quarterly instalment payments has been increased to 1.75% from 13 August 2018. The 0.5% rate applied to overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is unchanged.
See here.
