This news release is issued to draw attention to an increase in interest rates from 21 February 2023.
The rules relating to interest charges for late payment are changing in the United Kingdom due to an increase of the Bank of England base rate to 4% from 3.5%. The Isle of Man Government has an agreement with the United Kingdom to keep the management and administration of VAT and other indirect taxes aligned with the United Kingdom.
As a consequence of the change in the base rate, the Treasury interest rates for late payment and repayment will increase from 21 February 2023 to the following:
- late payment interest rate — 6.5%
- repayment interest rate — 3%
As long as you make your payments on time you will not be liable to late payment interest rates. Where you have made an overpayment, you may be due repayment interest.
More information on the current and new interest rates can be found under Technical Information, VAT, Duty and Interest Rates.
Sources:
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