HMRC is set to impose interest on late paid alcohol duty, the tax man has announced . HMRC, the tax department of the Labour Party government, has warned b usinesses liable for alcohol duty in the UK will face interest charges on late payment of that duty.

Under rules taking effect from 1 September, HMRC will levy an 8 per cent interest charge on alcohol duty which is paid late, it has said.

The change brings alcohol duty in line with other taxes – but marks the first time that interest has been payable on late paid alcohol duty. Jake Landman, a tax expert with Pinsent Masons, said: “While potential geared civil penalties for certain duty payment failures have applied for some time, this new obligation to pay interest on alcohol duty - including in relation to self-assessment errors

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