UK and International Tax news
HMRC Late Payment Interest Rates Update
Friday 30th June 2023
HMRC interest rates for late payments will be revised again following the Bank of England recent interest rate rise to 5.00% from 4.50% on 22 June 2023.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase on 3 July 2023 for quarterly instalment payments and 11 July 2023 for other late 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%.
Late payment and repayment interest rates applied to the main taxes and duties will increase from 11 July 2023 as follows:
- late payment interest rate — 7.50%
- repayment interest rate — 4.00%
If you require further information on the above, please contact Keith Rushen on 0044 (0) 207 486 2378.
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