New Interest Rates For Late And Overpaid Taxes

05 December 2011

HM Revenue and Customs has announced new interest rates to be charged for late and overpaid taxes from 29th September 2009. (Note that Corporation Tax quarterly instalment payments apply from 21st September 2009).

• For income tax, NICs, capital gains tax, stamp duties, VAT, excise duties, environmental taxes, insurance premium tax and custom duty the rate for late payments is to be 3% (previously 2.5%) and over payments rates are to be 0.5% (previously 0%)
• Corporation tax quarterly installment late payment rates are to remain at 1.5% and the over payments rate is to be 0.5% (previously 0.25%)
• For accounting periods ending on or after 01/10/93 corporation tax late payment rates are to be 3% (previously 1.75%) and over payment rates are to be 0.5% (previously 0%). For accounting periods ending on or after 01/08/99, the rate for late payments is to be 3% (previously 2.5%) and for over payments the rate is to be 0.5% (previously 0%)
• For income tax on company payments that became due on or after 14/10/99, the rate for late payments is to be 3% (previously 2.5%) and for over payments the rate is to be 0.5%
• Inheritance tax, capital transfer tax and estate duty are to have a rate for late payments of 3% (previously 0%) and the overpayment rate is to be 0.5% (previously 0%)
• For advance corporation tax, corporation tax on or before 30/09/93, stamp duty reserve tax (to 30/09/99), petroleum revenue taxes and income tax on company payments due on or before 13/10/99, the new rate for late payments is to be 3% (previously 2%) and the overpayments rate is to be 0.5% (previously 2%)