As HMRC interest rates are linked to the Bank of England base rate, the increase in the base rate from 0.25% to 0.5% on 3 February 2022 has triggered an increase in rates for late payments.
HMRC have confirmed that late payment interest rates will increase from 21 February 2022.
This means that anyone that hasn’t paid the self assessment tax that was due on 31 January 2022 will find that the payment interest cost will increase from 21 February 2022.
If you haven’t yet paid any monies owed to HMRC from your self-assessment, please do so as soon as possible otherwise you could be in for a higher bill than you expect.
Don’t be fooled by the misleading headlines, HMRC have not actually extended the self-assessment deadline, and paying late is likely to cost you more.