16/07/2026
Late payment of tax has become significantly more expensive.
From 6 April 2025, HMRC increased late payment interest to Bank of England base rate plus 4% for most taxes, with the current rate at 8.25% from 28 May 2025.
Rates can change every six weeks in line with BOE decisions, and interest is charged alongside late payment penalties.
If you’re struggling to pay, setting up a Time to Pay arrangement early can help avoid penalties.