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Taxman collects more than £400m in interest charges

Newsletter issue – March 2025

The amount the tax man collects from interest charges has grabbed some media attention in recent weeks, as new data was published.

Following a Freedom of Information request, it was revealed that HMRC received more than £400m purely from interest charges in the last calendar year (January to December 2024).

This figure includes money that has come from taxpayers, trusts and estates that missed payment deadlines.

Incredibly, the figure has risen to three times greater than it was in 2021 - when revenue stood at £131.9m. For 2022, the figure was £200m, followed by £328m in 2023.

The late payment interest rate rose significantly over the three year period that the figures covered, going from 2.6% in December 2021 to 7.75% (the peak) in August 2024. It's supposed to fall again in the coming weeks to 7%.

Analysts said that, aside from the increasing interest rate, another reason for the amount collected rising was due to higher numbers of self-employed people paying self-assessment tax returns in 2024.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk