May 11, 2023
By accountsadvice
BREXIT, Tax News, UK Tax

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