If you’re a business owner or self-employed individual, staying on top of tax deadlines is about to become even more crucial. From 6 April 2025, HMRC increased its late payment interest rates by 1.5 percentage points across all taxes, following a change in legislation announced in the Autumn Budget 2024.
This means that the late payment interest rate will rise to 8.5% from the current rate, which is calculated as the Bank of England base rate plus 4.00%. The aim is to encourage timely tax payments and ensure fairness for those who meet their obligations on time.
For businesses and individuals, this change underscores the importance of proactive financial management. Late payments can now incur higher costs, affecting cash flow and financial planning. It’s essential to review your tax schedules and ensure that payments are made promptly to avoid these increased charges.
As experienced West London accountants working in Acton, Ealing, Chiswick and elsewhere in London, we understand the challenges that come with navigating tax regulations. Our team is here to help you stay compliant and manage your finances effectively. We offer tailored advice and support to ensure that you’re well-prepared for these changes and can avoid unnecessary penalties.
Don’t let these new rates catch you off guard. Contact us today to discuss how we can assist you in staying ahead of your tax obligations and maintaining your financial health.