HMRC’s Late payment interest rises again
Posted on 8th February 2023 by Joanne Stoneman
A further increase in the Bank of England’s base rate means that HMRC’s late payment interest rates will rise again next week.
A further increase in the Bank of England’s base rate means that HMRC’s late payment interest rates will rise again next week.
On 2 February, the Bank of England announced that it would increase the base rate of interest by 0.5%, to 4%.
As HMRC’s late payment and repayment interest rates are linked to the base rate, they are also set to increase.
From 13 February 2023 the following rates will apply:
- Late corporation tax paid quarterly - 5%
- Interest on overpaid corporation tax - 3.75%
From 21 February, the rates for other taxes will apply:
- Late payment interest - 6.5%
- Interest on overpaid tax - 3%
If your tax payment is outstanding, make the payment as soon as possible to avoid higher interest charges. Note that these will apply even if you agreed a time to pay arrangement with HMRC, so it's still more efficient for you to pay as much as you can sooner.