With the Bank of England’s base rate and HMRC’s interest rates being tightly knit, the Monetary Policy Committee’s decision on 2 February 2023 to increase the base rate to 4% has forced HMRC’s hand in increasing the interest rate for late paid tax and the rate paid on repayments of tax.
What are the changes?
- From 13 February 2023, companies in the Corporation Tax quarterly instalment payment regime will see an interest increase from 4.5% to 5% for underpayments
- For all other late payments of taxes (business or personal), an increase from 6% to 6.5% will take affect from 21 February 2023
- Interest rates on the overpayment of tax will increase to 3%, also beginning on 21 February 2023
Changes to tax interest rates are an unfortunate modern-day certainty, meaning another reason to stay ahead… to speak with our market-leading, specialist tax team, get in touch with us.
The Team
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