HMRC increases penalty interest rates
An increase in the Bank of England base rate also increases the penalty interest charged by HMRC on underpaid taxes. What are the new rates?
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A £3,000 side-hustle allowance: more generous than it looks?
People making money from small side businesses will have more room to earn without paying income tax, following a Budget decision to triple the trading allowance. However, the figure relates to what you receive before expenses, not the profit you keep. Will the £3,000 allowance actually save you tax?
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Electronic VAT return and payment due
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Employment Intermediaries quarterly return due
Late payment penalty interest is charged at the base rate plus 4%, whilst repayment interest rates are calculated using the base rate minus 1% (with a lower limit of 0.5%). As the base rate increased by 0.25% to 4% on 5 November, a corresponding increase is on the way for penalty interest on underpaid taxes.
From 16 November 2026 interest on late corporation tax paid quarterly will increase from 6.25% to 6.5%. For all other taxes, late payment interest will increase from 7.75% to 8% from 24 November. Repayment interest will also jump from 2.75% to 3% from 24 November.
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