Saffery Champness partner in the private wealth group Tim Gregory says the interest charged on late payments of income tax, NI contributions, capital gains tax, stamp duty, stamp duty land tax, and stamp duty reserve tax, as well as tax credit overpayments and tax attributable to error by the tax payer has risen from 7.5 per cent to 8.5 per cent.
The interest on late payments or repayments of inheritance tax, capital transfer tax and estate duty has increased from 4 per cent to 5 per cent.
Default interest for other areas such as under-declared VAT, air passenger duty, insurance premium tax, landfill tax and customs duty has risen from 7.5 to 8.5 per cent.
Gregory says: “These increases are in line with other moves by HMRC to place a greater onus on the taxpayer to make the correct payments, or to pay the consequences should there be an error. There is now an even greater incentive for tax payments, the majority of which are made in advance anyway, to be made on time.”