HM Revenue & Customs (HMRC) wasted no time in notifying its intention to raise the rates of late payment interest, following the announcement of the rise in the Bank of England base rate to 0.75% last week.

HMRC has not yet published details of the increase, but has confirmed that the change will come into effect on:

13 August 2018 for quarterly instalment payments and

21 August 2018 for non-quarterly instalment payments.

Prior to the announcement late payment interest rates were fixed at 3%.

HMRC has confirmed that there will be no increase in repayment interest.