HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 1.25%.
The Bank of England Monetary Policy Committee voted on 16 June 2022 to increase the Bank of England base rate to 1.25% from 1%.
HMRC interest rates are linked to the Bank of England base rate.
As a consequence of the change in the base rate, HMRC interest rates for the late payment will increase.
These changes will come into effect on:
- 27 June 2022 for quarterly instalment payments
- 5 July 2022 for non-quarterly instalments payments
The repayment interest rate will remain at 0.5%. The repayment rate is set at Bank Rate minus 1%, with a 0.5% lower limit.
Source gov.uk
