Interest on Late Tax Payments Rises Again!

Following the Bank of England’s announcement on 3 November 2022 that the base rate would rise to 3%, HMRC ‘s interest rates will also increase by 0.75%, to 5.5% for late payment interest and 2% for repayment interest, from 22 November 2022.

The rates track the base rate. The late payment rate is set at 2.5% above the base rate. The repayment rate is set at a ‘minimum floor’ of 0.5% until the base rate reaches 1.5%.

HMRC’s website contains the full picture –

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

Anyone paying inheritance tax by instalments should immediately review the cost of those arrangements as a matter of urgency.

Stephen Parnham