HMRC interest rates increase again
Posted on 7th June 2023 at 16:39
The Bank of England’s Monetary Policy Committee (MPC) met on 10 May 2023 and voted 7-2 in favour of raising interest rates by 25 basis points to 4.5% in a move to try and continue to tackle continued inflation. This is the twelfth consecutive time that the MPC has increased interest rates with rates now the highest they have been since 2008.
This means that the late payment interest rate applied to the main taxes and duties that HMRC charges increased by 0.25% to 7%.
These changes came into effect on:
22 May 2023 for quarterly instalment payments; and
31 May 2023 for non-quarterly instalments payments.
The repayment interest rates applied to the main taxes and duties that HMRC pays interest on increased by 0.25% to 3.5% from 31 May 2023. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.
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