UK HMRC revises late payment and repayment interest rates following the Bank of England’s base rate increase from 4.25% to 4.50% on May 11, 2023. Late payment interest is now set at the base rate plus 2.5% and repayment interest at the base rate minus 1%, with a minimum rate of 0.5%. Late payment and repayment interest rates are increased to 7.0% and 3.5%, respectively, from May 31, 2023. These rates apply to most tax payments, including Corporation Tax, Income Tax, National Insurance contributions, Capital Gains Tax, and others. However, for Corporation Tax quarterly installment payments, the late payment interest rate is 5.50% from May 22, 2023. For overpaid quarterly installment payments and early payments of Corporation Tax not due by installments, the repayment interest rate is 4.25% from May 22, 2023. Further details on HMRC interest rates for late and early payments, including past rates, are available via the provided link.
Source Orbitax
