HMRC Late Payment Interest Calculator 2026/27
Calculate interest and penalties on late tax payments to HMRC. See how much you'll owe including statutory interest and late filing penalties.
What is the HMRC late payment interest rate for 2026/27?
The HMRC late payment interest rate for 2026/27 is 7.75% per annum. This is calculated daily from the due date until the date of payment. Interest is charged on all late tax payments including Income Tax, Corporation Tax, and VAT.
How is HMRC interest calculated?
HMRC interest is calculated daily using simple interest. The formula is: Tax Owed × (Annual Rate ÷ 365) × Number of Days Late. For example, £5,000 tax that's 90 days late at 7.75% would accrue approximately £95.55 in interest.
What are the late payment penalties?
HMRC charges penalties in addition to interest: 5% of tax owed after 30 days late, another 5% after 6 months, and another 5% after 12 months. This means maximum penalties of 15% on top of the interest charges.
Can I appeal HMRC interest charges?
Interest charges cannot usually be appealed as they are statutory. However, penalties may be appealed if you have a 'reasonable excuse' such as serious illness, bereavement, or HMRC errors. Time to Pay arrangements can prevent further penalties.
How do I set up a Time to Pay arrangement?
Contact HMRC before the payment deadline to arrange paying in instalments. You can set up a payment plan online for debts under £30,000 or call the Payment Support Service. Interest still accrues but penalties may be avoided.
Contact HMRC before your payment deadline to set up a Time to Pay arrangement.
Payment Support Service: 0300 200 3835