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HMRC interest rates for late and early tax payments rise… yet again.

With the Bank of England’s base rate and HMRC’s interest rates being tightly knit, the Monetary Policy Committee’s decision on 2 February 2023 to increase the base rate to 4% has forced HMRC’s hand in increasing the interest rate for late paid tax and the rate paid on repayments of tax.

Author

Richard McNeilly

What are the changes?

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  • From 13 February 2023, companies in the Corporation Tax quarterly instalment payment regime will see an interest increase from 4.5% to 5% for underpayments

  • For all other late payments of taxes (business or personal), an increase from 6% to 6.5% will take affect from 21 February 2023

  • Interest rates on the overpayment of tax will increase to 3%, also beginning on 21 February 2023

Changes to tax interest rates are an unfortunate modern-day certainty, meaning another reason to stay ahead… to speak with our market-leading, specialist tax team, get in touch with us.