The rate of late-payment interest for most taxes is increased to 4.25%, and the repayment interest rate is increased to 0.75%, from 23 August 2022.

The changes follow the Bank of England decision on 5 August 2022 to increase the bank base rate from 1.25% to 1.75%.

For most taxes, this increase means that the rate of late-payment interest is increased to 4.25% and the rate of repayment interest is increased to 0.75% from 23 August 2022.

For underpaid quarterly instalment payments, the rate of late payment interest is increased to 2.75% and the rate of repayment interest on overpaid quarterly instalment payments (and on early payments of corporation tax not due by instalments) is increased to 1.50% from 15 August 2022.