Rate increase update - November 2024
Following the Bank of England's recent decrease of its base rate to 4.75%, HMRC announced a decrease to its interest rate for late payments to the main taxes and duties that HMRC charges and pays interest on to:
- Late payment interest rate has decreased to 7.25% from 26th November 2024.
- Repayment interest has decreased to 3.75% from 26th November 2024.
- The change of rates for quarterly instalment payments will take effect from 18th November 2024
- Learn more
PLEASE NOTE that from the 6th April 2025 the rate will be increasing by a further 1.5% following an announcement at chapter 5.27 of the Autumn Budget 2024. Late payment interest is currently set at the Bank of England base rate plus 2.5%, (increasing to 4% from 6th April 2025). Repayment interest is set at the Bank of England base rate minus 1%, with a lower limit - or ‘minimum floor’ - of 0.5%.
Tax returns deadlines
Self-Assessment
- 31st October - paper tax return submission
- 31st January - Online submission
- 31st January - Tax payment deadline
Please note that businesses with a Self-Assessment tax bill of more than £1,000 are required to make a 'Payment on Account' towards their following year's tax bill.
Learn more about 'Payment on Account'. (payment on account article will be updated)
Payment arrangements
If you cannot pay your Self-Assessment bill on time and owe less than £30,000, you can contact HMRC to set up a Time to Pay payment plan.
VAT - Submitted quarterly
One calendar month and 7 days after the end of an accounting period.
Company Accounts
- Submit your first accounts to Companies House - 21 months after registering your company on Companies House.
- Submit your annual accounts to Companies House - 9 months after your company's financial year end.
Corporation Tax
- Submit and pay - 9 months and one day after the end of your accounting period.
- File your company's tax return - 12 months after your company's corporation Tax accounting period, ends.
