HMRC late payment interest to be revised June 2023

The Bank of England Monetary Policy Committee announced on 22 June 2023 to increase the base rate to 5% from 4.5%. 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 late payment and repayment will increase to from 7.0% to 7.5% from 11 July 2023. This is the rate that will apply to late payment of corporation tax (non-quarterly payments), income tax and inheritance tax.

This change may seem like a small increase but compared to the 3.75% late payment interest charge that was in place last year this represents a significant increase.

For corporation tax payments that are due in instalments, the late payment interest charge will increase from 5.5% to 6% and this change has come into effect from 3 July 2023.

See: HMRC late payment interest rates to be revised after Bank of England increases base rate – GOV.UK (www.gov.uk)

For further information, please contact Joe Wilson on 023 8046 1237.