HMRC is hiking interest rates on unpaid tax to a 13-year high of 4.25 per cent— six times the rate paid on money it owes. This is a 1.5 percentage point increase since the start of 2022, when its late-payment fee was 2.75 per cent. Experts warn bills could spiral out of control if taxpayers do not get on top of outstanding bills. Fee grab: HMRC is hiking interest rates on unpaid tax to a 13-year high of 4.25% -a 1.5% increase since the start of 2022, when its late payment fee was 2.75%It comes after the Bank of England raised the base rate from 1.25 per cent to 1.75 per cent — the largest single jump in 27 years. HM Revenue & Customs also raised the rate it pays on repayments — up 0.25 per cent to 0.75 per cent, which is far less generous.

Source: Daily Mail August 17, 2022 02:33 UTC