Due to the further increase in the Bank of England base rate earlier this month, HMRC recently announced another increase in its interest rates. Details of the new rates which take effect from today Monday 14 November 2022 for quarterly instalment payments and Tuesday 22 November 2022 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, increases to 5.5 percent; and
- repayment interest, set at base rate minus 1 percent, with a lower limit of 0.5 percent (known as the ‘minimum floor’), increases to 2 percent.