HMRC has taken in over £137 million from late payment interest so far for 2023/24, a freedom of information request from investment platform AJ Bell shows.

The tax authority has charged 1.3 million taxpayers late payment interest for the last tax year with the average interest payment standing at just over £100.

The figures only count taxpayers once the interest accrued or late filing penalty has been paid, meaning the figures for the 2023/24 tax year will likely be significantly higher than they are now.

This can be evidenced by looking back to 2022/23, where the total amount paid has jumped by over 30% in the last year to just over £200 million.

The sums have risen since HMRC hiked late payment interest rate to 4% above the Bank of England base rate from 6 April 2025.

Charlene Young, senior pensions and savings expert at AJ Bell, said:

‘These latest figures suggest that taxpayers still face difficulty navigating the UK’s complex tax system and HMRC are cashing in as a result.

‘Millions have paid late payment interest in recent tax years, despite moves to relax the rules on who must file a self-assessment return.

‘Taxpayers can become unstuck if they find the systems and deadlines difficult to navigate, and others potentially face higher interest and penalties when it comes to mistakes and not paying on time.’

Almost 400 employers from across the UK have been named for failing to pay the minimum wage to tens of thousands of workers, says the government.

Around 60,000 workers were found to have been underpaid, collectively missing out on £7.3 million in pay.

The findings come alongside enforcement action against businesses failing to pay their staff the legal National Minimum Wage.

In addition to repaying the underpaid £7.3 million penalties totalling £12.6 million have now been issued to businesses that failed to pay staff correctly.

The Department for Trade and Industry says this makes it clear that ‘workers won’t be made to pay for the mistakes or negligence of those they work for, regardless of how big or well-known they are’.

The announcement also comes ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay boost of £900 for those working full time.

Business Secretary Peter Kyle said:

‘The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.

‘A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.’

Internet link: GOV.UK

HMRC has launched a new ‘Tax Confident’ website which it says will help people fill their tax knowledge gaps.

The tax authority says the site is designed around real-life situations, helping people to find information that is relevant to their circumstances. These include ‘tax in retirement’, ‘small businesses’ and ‘working life’.

The website also features ‘tax basics’, to help people understand the essentials and includes information about the free HMRC app and how to get further support.

HMRC says that with simple explanations, videos, and examples, Tax Confident makes it easier for people to understand tax. It also has links to GOV.UK guidance for when people are ready for more detail.

As well as the basics, current resources are aimed at pensioners, and people establishing new small businesses, who sometimes feel unsure about tax and are more likely to look for help.

Myrtle Lloyd, HMRC Chief Customer Officer and Customer Services Director General, said:

‘We know that tax can feel confusing at times, especially when you are not sure where to start. HMRC’s Tax Confident website is here to help people get to grips with the basics, covering everything from the tax essentials for new businesses to the need to knows for retirement.

‘Tax Confident is designed to help you feel informed, capable and in control when it comes to managing your tax.’

Internet link: HMRC

Over 200 hospitality and leisure CEOs have urged the government to scrap plans for a Visitor Levy in England.

In a letter to the Chancellor, they warn that the proposed holiday tax will ‘hit families hardest, put jobs at risk and drain money from local businesses and communities’.

Signatories to the letter warn that ‘holidays are for relaxing, not taxing’, with the proposed tax meaning tourists would face an extra £100 or more for a two-week holiday in the UK.

The letter says this could force families to shorten trips, skip travel altogether or head overseas, spending their money elsewhere.

The letter also says there will be significant damage to local communities across England that rely on tourism for survival, as fewer visitors mean fewer local jobs and lower spending at local businesses.

Allen Simpson, Chief Executive of UKHospitality, said:

‘Holidays are for relaxing – not taxing.

‘Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you’re already paying your fair share of tax.

‘In fact, it’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.

‘We are so lucky to enjoy these wonderful islands and we should be encouraging people to visit every part of our country – not taxing them for doing so.

‘The government needs to scrap the holiday tax.’

Internet link: UKHospitality

The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.

Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.

Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.

The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your self assessment payment.’

Internet link: HMRC