HMRC increases late payment interest rate

HMRC has increased interest rates with late payment bills charged 7.5% from 11 July, the highest rate since 2001.

07 Aug 2023

HMRC has increased interest rates with late payment bills charged 7.5% from 11 July, the highest rate since 2001.

The move follows the Bank of England's June increase in the base rate with HMRC also increasing the rate paid on repayments of tax.

The Bank increased the base rate to 5% from 4.5% on 22 June, the 13th consecutive rise.

The late payment and repayment interest rates follow this rise and are applied to the main taxes and duties that HMRC currently charges and pays interest.

The late payment interest rate has increased by 0.5% to 7.5% from 11 July.

Late payment interest is payable on late tax bills covering income tax, national insurance contributions (NICs), Capital Gains Tax (CGT), corporation tax pay and file, Stamp Duty Land Tax (SDLT), stamp duty and stamp duty reserve tax.

Repayment interest was also increased from the current 3.5% rate to 4%.

Internet link: GOV.UK

Chartered Tax Advisers ACCA

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