Time is money: how to mitigate late payment interest in UK tax disputes
Published on 28th May 2025
In an article first published in Tax Journal (Issue 1708 on 16 May 2025), Jack Prytherch sets out various practical steps that taxpayers might take to minimise delays in their disputes with HMRC and thereby mitigate any additional interest charged
From 6 April 2025, HMRC late payment interest rose to 8.5%, representing a more than threefold increase since the beginning of 2022 (reduced slightly to 8.25% from 28 May 2025). This presents significant challenges for taxpayers who face potentially prolonged tax disputes and raises questions of unfairness where delays can be attributed to the actions of HMRC.
While it is possible to "object" to late payment interest in certain circumstances, taxpayers should expect strong resistance from HMRC. Where a payment on account is not possible, efficient case management has never been more important.
This article was first published in Tax Journal (Issue 1708 on 16 May 2025).
