With effect from 6th September, the Taxman is increasing the interest rate on tax and national insurance paid late. The only good news is that repayment supplement if you've overpaid tax is also increasing.

These are to reflect changes in market rates and so it's even more important to pay your tax on time if at all possible.

The main interest rate changes are...

• Late payment of income tax, corporation tax, NI, CGT and stamp duty – rate increase from 6.5% to 7.5%.
• Repayment supplement on income tax, NI, CGT and stamp duty - rate increase from 2.25% to 3%. For corporation tax it increases from 3% to 4%.
• Late payment or repayments of inheritance tax - increase from 3% to 4%.
• The rate of interest on overpaid corporation tax for accounting periods ending after 1 July 1999, in respect of periods after the normal due date, changes from 3% to 4%.

Anyone having difficulties in meeting their tax liabilities on time and perhaps need advice and assistance in negotiating with HMRC should contact us.

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