HMRC Updates Guidance: Increased Interest Rates on Late VAT Payments and Penalties

• HMRC updated guidance on late VAT payments
• Late payment interest charged from first overdue day until paid in full
• Interest rate is Bank of England base rate plus 4 percent
• Rate increased from 2.5 percent
• Interest applies to all late payments where VAT is due
• Includes overdue amounts from VAT Return, amendments, corrections, assessments, missed payments
• Interest charged on overdue penalties including late payment and submission penalties
• Interest charged on outstanding balance for instalment payments until fully paid

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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