UK and International Tax news
HMRC Late Payment Interest Rates To Increase
Friday 30th September 2022
HMRC interest rates for late payments will be revised following the Bank of England recent interest rate rise to 2.25% from 1.75%.
The Bank of England Monetary Policy Committee voted on 22 September 2022 to increase the Bank of England base rate to 2.25% from 1.75%.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase on 3 October 2022 for quarterly instalment payments and 11 October 2022 for non-quarterly instalments payments.
HMRC interest rates are set in legislation and are linked to the Bank of England base rate. Late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.
The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:
- late payment interest rate — 4.75% from 11 October 2022
- repayment interest rate — 1.25% from 11 October 2022
If you require further information on the above, please contact Keith Rushen on 0044 (0) 207 486 2378.
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