- UK HMRC revised late payment and repayment interest rates following a base rate increase by the Bank of England from 4.5% to 5.0% on 22 June 2023.
- Late payment interest is set at the base rate plus 2.5% and repayment interest is set at the base rate minus 1%, with a minimum rate of 0.5%.
- The late payment and repayment interest rates are increased to 7.5% and 4.0%, respectively, from 11 July 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 6.0% with effect from 3 July 2023.
- For overpaid quarterly installment payments and early payments of Corporation Tax not due by installments, the repayment interest rate is 4.75% from 3 July 2023.
Source Orbitax
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