Unpaid Taxes: Interest Rates
Commons · Question 106494 · Tabled 19 Jan 2026 · Treasury · Official record
Answered 22 Jan 2026
Question
Asked by Gregory Campbell
To ask the Chancellor of the Exchequer, if she will review the adequacy of the 7.75% rate of interest chargeable on unpaid income tax after each January deadline.
Answer
Answered by Dan Tomlinson, 22 Jan 2026
Late payment interest is charged whenever tax is paid late or paid where amounts have been overpaid.The interest charged ensures people aren’t encouraged to overpay their tax to secure a higher interest rate than available commercially. It also ensures th...