News

HMRC interest rates for late payments and repayments

Clever Accounts
April 7, 2025

Rate Update – From 6th April 2025

Following the Bank of England's recent decrease of its base rate to 4.5%, HMRC announced a change 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 increased to 8.5% from 6th April 2025*
  • Repayment interest has decreased to 3.5% from 6th April 2025
  • Learn more
*Late payment interest has increased as the rate charged by HMRC has increased from 2.5% to 4% above the Bank of England Base Rate, effective 6th April 2025. Repayment interest remains at 1% below the bank of England Base Rate.

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.

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