Two calculators in one. Work out the interest HMRC charges on tax paid late, day by day across every rate change since 2000, or the statutory interest you can claim when another business pays your invoice late.
Tax owed to HMRC or a business invoice
HMRC charges late payment interest on tax paid after the due date. Since 6 April 2025 the rate has been the Bank of England base rate plus 4%, up from base rate plus 2.5% before then. With Bank Rate at 3.75%, HMRC's late payment rate has been 7.75% since 9 January 2026.
| From | HMRC late payment rate |
|---|---|
| 9 January 2026 | 7.75% |
| 27 August 2025 | 8.00% |
| 28 May 2025 | 8.25% |
| 6 April 2025 | 8.50% |
| 25 February 2025 | 7.00% |
| 26 November 2024 | 7.25% |
| 20 August 2024 | 7.50% |
| 22 August 2023 | 7.75% |
It is simple interest, so HMRC does not charge interest on interest. It is charged for the due date but not for the day you pay, at the rate in force on each day, and HMRC's debt management manual gives the basis as the amount times the interest rate times the number of days divided by 366. The same table covers Income Tax, National Insurance, Capital Gains Tax, Stamp Duty Land Tax and VAT for periods starting on or after 1 January 2023, and HMRC's Corporation Tax pay and file rates have matched it since 29 September 2009.
Interest is not a penalty. Late payment penalties are separate, and you can estimate Self Assessment penalties with the Self Assessment penalty calculator.
If another business pays you late and your contract does not set a different rate, you can claim statutory interest of 8% plus the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998. The base rate used is the one in force on 30 June for interest that starts running between 1 July and 31 December, or on 31 December for interest that starts between 1 January and 30 June, and it stays fixed for that debt. Scotland has its own 2002 order with the same rule.
Interest starts the day after payment was due. If you did not agree a payment date, the law says payment is late 30 days after the customer gets the invoice or you deliver the goods or service, whichever is later. For interest that starts running at any point in 2026 the rate is 11.75%, because Bank Rate was 3.75% on both 31 December 2025 and 30 June 2026.
| Amount of debt | Fixed sum you can charge |
|---|---|
| Up to £999.99 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
GOV.UK's example: £1,000 owed with a base rate of 0.5% gives £85 of interest a year, or 23p a day, so £11.50 after 50 days using the rounded daily figure. Without rounding the daily figure, the calculator shows £11.64.
For your own figures, the self-employed tax calculator, VAT calculator and Corporation Tax calculator help you check what you owe before a deadline.
7.75% a year from 9 January 2026. That is the Bank of England base rate of 3.75% plus 4%, the margin that has applied since 6 April 2025.
As simple interest for each day from the due date up to the day before you pay, at the rate in force on each day. HMRC's debt management manual gives the basis as the amount times the rate times the number of days divided by 366.
Statutory interest of 8% a year plus the Bank of England base rate, unless your contract sets a different rate. For interest that starts running in 2026 that is 11.75%. You can also charge a fixed sum of £40, £70 or £100, depending on the size of the debt.
On the agreed payment date. If you did not agree one, payment is late 30 days after the customer gets the invoice or you deliver the goods or service, whichever is later. Agreed terms must usually be within 60 days for business deals and 30 days for public authorities.
No. HMRC's manual describes it as recompense for the loss of use of the money, not a penalty. Late payment penalties are separate charges.
Yes. Scotland has its own 2002 order that sets the same rate: 8% a year over the Bank of England rate in force on 30 June or 31 December before interest starts.
