HMRC late payment interest rates to be revised after Bank of England increases base rate

The Bank of England Monetary Policy Committee announced on 11 May 2023 that it would increase the Bank of England base rate to 4.5% from 4.25%. 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.

These changes will come into effect on:

• 22 May 2023 for quarterly instalment payments, and
• 31 May 2023 for non-quarterly instalments payments.

See: Rates and allowances: HMRC interest rates for late and early payments – GOV.UK (www.gov.uk)