This news release is issued to draw attention to a decrease in interest rates from 27 August 2025.
The rules relating to interest charges for late payment are changing in the United Kingdom due to a decrease of the Bank of England base rate to 4.25% from 4.00%. The Isle of Man Government has an agreement with the United Kingdom to keep the management and administration of VAT and other indirect taxes aligned with the United Kingdom.
As a consequence of the change in the base rate, the Treasury interest rates for late payment and repayment will decrease from 27 August 2025 to the following:
- late payment interest rate — 6.50%
- repayment interest rate — 3.00%
As long as you make your payments on time you will not be liable to late payment interest rates. Where you have made an overpayment, you may be due repayment interest.
If you are unable to make your VAT payments on time contact Customs and Excise via email at dmu.customs@gov.im or telephone at +44 1624 648160 (Monday to Friday 8.30am to 4.30pm).
For general enquiries please email customs@gov.im or call +44 1624 648130 (Monday to Friday 8.30am to 4.30pm).
