UK: Updated guidance on interest rates for UK tax payments
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The United Kingdom’s HM Revenue and Customs has recently published updated guidance on interest rates for late and early tax payments. The revisions include:
Effective from May 31, there will be a 7% late payment interest rate and a 3.5% repayment interest rate for various taxes, such as income tax, national insurance contributions (NICs), capital gains tax, VAT, excise duty, air passenger duty, insurance premium tax, and environmental taxes.
Starting from May 22, underpaid quarterly corporate income tax installments will attract an interest rate of 5.5%, while overpaid quarterly corporate income tax and early payments of corporation tax not due in installments will have a 4.25% interest rate.
For matters related to judgment debt taxation, a 7% interest rate will be in effect from May 31.
These updates in interest rates aim to ensure compliance with tax payment deadlines and provide clarity for taxpayers in the United Kingdom.