HMRC Raises Late Payment Interest to Its Highest Level Since 2009

From 22 November, HMRC will be increasing the interest charged on late tax payments — and it’s going up to a level we haven’t seen since the financial crisis back in 2009.

The jump comes off the back of the Bank of England raising the base rate by 0.75%.

What’s Changing?

Here’s the breakdown of the new rates:

• Late payment interest: rising to 5.5% (up from 4.75%).

• Repayment interest: increasing to 2.0% (up from 1.25%).

This means if you’re late paying your tax bill, HMRC will now be charging you interest at 5.5%.

On the flip side, if you’ve overpaid, you’ll only get 2% back.

Corporation Tax is also affected:

• Interest on underpaid quarterly instalments will now be 5.5%.

• Interest on overpaid instalments or early payments will be 2%.

Why Does It Matter?

For anyone already finding it tough to stay on top of tax bills, this isn’t welcome news. Higher interest rates mean mistakes or delays will cost you more, and quickly add up if things drag on.

How Number Crunch Can Help

This rise is another reminder of why it’s so important to have your tax affairs in order well ahead of deadlines. At Number Crunch, we make sure:

• You only pay the tax you actually owe.

• You know exactly what’s due and when.

• You have a clear plan in place to avoid nasty surprises.

Late payment interest at 5.5% is no joke — but with the right support, you can stay ahead of HMRC and keep more money in your pocket.

👉 Need help managing your tax deadlines? Get in touch with Number Crunch today.