Further increases to HMRC interest rates: May 2023 update

Following an unexpected further rise in the rate of inflation, the Bank of England has once again increased its interest base rate, now to 4.5% from 11 May 2023. Following this, HMRC interest rates have increased similarly, and for most taxes these are as follows:

Effective date Late payment Repayment
11 October 2022

4.75%

1.25%

22 November 2022

5.50%

2.00%

6 January 2023

6.00%

2.50%

21 February 2023

6.50%

3.00%

13 April 2023

6.75%

3.25%

31 May 2023

7.00%

3.50%

 

For corporation tax quarterly instalment payments the increases take effect sooner:

Effective date Underpayment Overpayment
3 October 2022

3.25%

2.00%

14 November 2022

4.00%

2.75%

23 December 2022

4.50%

3.25%

13 February 2023

5.00%

3.75%

3 April 2023

5.25%

4.00%

22 May 2023

5.50%

4.25%

 

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