United Kingdom United Kingdom and Isle of Man – Change to interest rates applied to late VAT payments and overpayments 13 June 202372 views1 min read In the UK, HMRC charge late payment interest from the first day that the VAT payment is due until the day it is paid in full. Interest is charged at the Bank of England’s base rate plus 2.5%. As a result of the Bank of England increasing its base rate from 4.25% to 4.5%, HMRC will impose 7% interest to late payments from 31st May 2023. …. Source Meridian Latest Posts in "United Kingdom"UK Flat Rate Scheme Under ReviewUK: VAT Changes under HMRC’s 2026 Transformation RoadmapFTT Rejects Reduced VAT Rate for David Lloyd Membership SubscriptionsRefunds of UK VAT for Non-UK Businesses / EU VAT for UK BusinessesVAT on Mobile Phones: Regulatory Updates on Mobile Device Tax Treatment Tax authorities / Penalties / Interest Automatic and mandatory exchange of information declared by Platform Operators – law of 16 May 2023 VIDA deadline may be extended
In the UK, HMRC charge late payment interest from the first day that the VAT payment is due until the day it is paid in full. Interest is charged at the Bank of England’s base rate plus 2.5%. As a result of the Bank of England increasing its base rate from 4.25% to 4.5%, HMRC will impose 7% interest to late payments from 31st May 2023. …. Source Meridian
