UK and International Tax news
HMRC Late Payment Interest Rates Update
Friday 30th December 2022
HMRC interest rates for late payments will be revised again following the Bank of England recent interest rate rise to 3.50% from 3.00% on 15 December 2022.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will come into effect on 26 December 2022 for quarterly instalment payments and 6 January 2023 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%.
Late payment and repayment interest rates applied to the main taxes and duties will increase from 6 January 2023 as follows:
- late payment interest rate — 6.00%
- repayment interest rate — 2.50%
If you require further information on the above, please contact Keith Rushen on 0044 (0) 207 486 2378.
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