Following the Bank of England’s decision to increase the base rate, HMRC have announced that their late payment interest rate will increase by 0.15% to 2.75% from 4 January 2022.

The rate, which applies to late payments of the main taxes and duties administered by HMRC, is tracked at 2.5% above the base rate. It had previously been held at 2.6% since April 2020.

Useful guides on this topic

Penalties: Late Payment
What penalties are charged when tax is paid late? 

Penalties: Late Payment MTD
Penalties for late payment of tax under Making Tax Digital for VAT and Income Tax.

External link

HMRC: late payment interest rates to be revised after Bank of England increases base rate 


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