Isle of Man Announces Increase in Late Payment Interest Rate for Indirect Taxes

The Isle of Man Department of Treasury has announced that the prescribed percentage that is added to the Bank of England base rate to determine the applicable late payment interest rate for VAT and other indirect taxes will increase from 2.5% to 4.0%, effective 1 May 2026. Considering the current base rate, this means that the late payment interest rate will be increased from 6.25% to 7.75%. Note that this aligns with the prescribed percentage for late payment in the UK, which was increased …