HMRC raises interest rates

For most taxes and payments, the late-payment interest rate will increase to 4.75% and the repayment rate to 1.25%, from 11 October 2022.

Interest charged on underpaid quarterly instalment payments of corporation tax will be 3.25%, and interest paid on overpayments will be 2%, with effect from 3 October 2022.

HMRC raised the rates following the Bank of England’s decision to increase the bank base rate to 2.25%.