As a result of the 0.5 percent increase to the Bank of England base rate earlier this month, HMRC interest rates for late payment increased recently by 0.5 percent, mirroring the increase in the base rate.
The rate of interest payable on most late payments of tax increased to 4.25 percent from 3.75 percent from 15 August 2022 for quarterly instalment payments of corporation tax and from 23 August 2022 for non-quarterly instalment payments of corporation tax and most other taxes.
The rate of interest on repayments also increased for the first time in many years from 0.5 percent to 0.75 percent from the same dates.