Interest Rate Increase on Late Paid Tax

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Current HMRC interest rates

The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:

  • late payment interest rate — 3.75% from 5 July 2022
  • repayment interest rate — 0.5% from 29 September 2009

HMRC interest rates are set in legislation being linked to the Bank of England base rate. There are 2 rates:

  • late payment interest, set at base rate plus 2.5% (the current base rate is 1.25%)
  • repayment interest, set at base rate minus 1%, with a lower limit of 0.5% (known as the ‘minimum floor’) – until the base rate exceeds 1.5% this rate will remain unchanged and has been since September 2009

This entry was posted in Business Tax, Personal Taxes, Uncategorized.