Late Payment Interest UK: Rates, Rules and How to Claim
Late payment interest works in two directions. You can charge it to business customers who pay you late, and HMRC charges it to you when you pay tax late. The Bank of England raised base rate to 4% on 5 November 2026, which moves one rate this month and leaves the other where it is. Here is how both work, a worked claim, and when we think it is worth sending.
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