- 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.
