HMRC late payment interest rates increase

 

 

Today, HMRC announced an increase in its interest rates, due to another increase in the Bank of England base rate, from 4.25% to 4.5%.

 

The new rates will take effect from Monday, 22nd May 2023, for quarterly instalment payments.

 

The new rates will take effect from Wednesday, 31st May 2023, for non-quarterly instalments payments.

 

 

The two new increased rates of interest are:

  • Late Payment Interest which is set at base rate plus 2.5%.  This will increase from 6.75% to 7% on 31st May 2023.

  • Repayment Interest which is set at base rate minus 1% with a lower limit of 0.5% (known as the ‘minimum floor’).  This will increase to from 3.25% to 3.5% from 31st May 2023.

 

 

For further information, please click: HMRC late payment interest rates to be revised after Bank of England increases base rate – GOV.UK (www.gov.uk)