Poole-based Accountants and Tax Advisors, Inspire Professional Services, are warning local tax payers of increases in the interest rate charged by HM Revenue & Customs (HMRC) on late tax payments, which come into effect on 29 September 2009.
The latest rate adjustment applies to income tax, corporation tax, National Insurance contributions, capital gains tax, stamp duty, VAT and excise duty. In these cases the rate for late payment increases from 2.5% to 3%. 
HMRC is also introducing interest on late payments of inheritance tax, capital transfer tax and estate duties, which have previously been excluded from interest, and bringing the interest charged for late payment of these taxes into line with the others at 3%.
Speaking of the increase, Chris Downing, a Tax Advisor at Inspire said: "We always urge people to pay their tax on time but appreciate that people find this difficult from time to time. Given the latest interest rate change by HMRC we are recommending that if you are unable to pay your tax on time you contact HMRC before the tax payment date and explain your difficulties to them. They are usually much more understanding with people who notify them of difficulties in advance, rather than with those who wait until the deadline has passed." | 
