DAILY INTEREST
How much is HMRC charging you today?
HMRC charges late-payment interest at Bank of England base rate plus 4%, calculated daily.
BoE base3.75%·HMRC7.75%
3.75% Bank of England base + 4% = 7.75% HMRC late-payment rate.
DAILY INTEREST ACCRUING
£5.31
ACCRUED SO FAR (30 DAYS)
£159
MONTHLY COST
£159
IF UNPAID FOR A FULL YEAR
£1,938
What this means in practice
- At £25,000 unpaid, every day costs £5.31.
- A missed quarterly VAT cycle (90 days) = £478.
- A full year unpaid = £1,938.
- Two years unpaid (penalty caps don't reset) = £3,875.
This is interest only. The 3% / 3% / 10% penalty stack is separate.
Live rate from the Bank of England base (3.75%) plus 4% per the HMRC formula. Interest applies daily and runs from the day after the deadline until the bill is paid in full.