HMRC has increased its late payment interest rates to 0.75% after the Bank of England increased their base rates
The tax authority revised its interest rates for late payments after the Bank of England (BoE) increased the base rate from 0.5% to 0.75%.
HMRC confirmed that the repayment interest rate will rise to 0.75% with the rises due to come into effect shortly The repayment interest rate will remain at 0.5%.
The changes to late payment interest will come into effect on:
- 28 March 2022 for quarterly instalment payments; and
- 5 April 2022 for non-quarterly instalments payments.
HMRC’s interest rates are linked to the Bank of England’s base rate, and due to the base rate increasing HMRC automatically increases rates.