Following on from the Bank of England’s latest increase in the base rate to 1.75%, HMRC have confirmed they will raise interest rates on late payments by a further 0.5% from 23 August 2022
This is the second increase in as many months, and has the late payment interest rate at its highest level since January 2009 at 4.25%.
This late payment interest rate applies to any tax bills which are paid late, including Income Tax, National Insurance Contributions, Capital Gains Tax, Stamp Duty Taxes, and Corporation Tax.
What are the HMRC repayment interest rates?
Looking on a slightly more positive side, HMRC have also advised that they will increase the repayment interest rate, but only by 0.25%.
This means that HMRC will now pay 0.75% rather than 0.5%, which has been the rate since September 2009!
As ever, if you have any questions relating to this, or any of our other articles, please do not hesitate to contact any member of the IN Team who will be happy to help.