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% |