HMRC raises interest rates again

For most taxes and payments, HMRC’s interest rates are increased to the following with effect from 22 August 2023:

• late-payments of tax (amounts owed to HMRC): 7.75%; and 
• repayments (amounts owed by HMRC): 4.25%

For quarterly instalment payments of corporation tax, HMRC’s interest rates are as follows from 14 August 2023:

• underpaid quarterly instalments: 6.25%; and
• overpaid quarterly instalments: 5%

This increases follow the Bank of England’s 2 August 2023 decision to increase the bank base rate to 5.25%.