HMRC interest rates increased again

Following the Bank of England’s decision to increase the bank base rate by a further 0.25 percentage points to 4.25%, HMRC has updated its late-payment and overpayment/repayment interest rates accordingly.

For late payments of most taxes, HMRC will charge 6.75% interest. The repayment interest rate is increased to 3.25%. These increases apply from 13 April 2023.

For underpaid quarterly instalments of corporation tax the interest rate is increased to 5.25%, and interest on overpaid quarterly instalments is raised to 4%, both with effect from 3 April 2023.