If you owe tax, for example from a Self Assessment bill, late payment interest will cost more. Repayment interest on money HMRC owes you also goes up. If you cannot pay in full, talk to us before the due date.
Late payment interest is set at the base rate plus 4%, so it rises with the base rate. Paying on time, or agreeing a time to pay arrangement early, keeps the cost down.
HMRC interest on late corporation tax, VAT and PAYE rises in line with the base rate. Check your cash flow for upcoming payments and speak to us if any look tight.
HMRC interest rates are set UK-wide, so they work the same way in Scotland for taxes HMRC collects, such as income tax, National Insurance, VAT and corporation tax.