Due to another increase in the Bank of England base rate last week, HMRC has since announced the usual increase in its interest rates. Details of the new rates which take effect from Monday 13 February 2023 for quarterly instalment payments and Tuesday 21 February 2023 for non-quarterly instalments payments are available here.
The two new increased rates of interest are as follows:-
- late payment interest, set at base rate plus 2.5 percent, will increase to 6.5 percent from 6 percent; and
- repayment interest, set at base rate minus 1 percent, with a lower limit of 0.5 percent (known as the ‘minimum floor’), will increased to 3 percent from 2.5 percent.