Further increases to HMRC interest rates

In the wake of the “mini-Budget” and the resulting economic concerns, the increase in the Bank of England base rate to 2.25%, then 3.00% and 3.50% has resulted in further increases to HMRC interest rates, following the already recent increase on 23 August 2022. 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%

 

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%

 

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