HMRC’s interest rate for late payments of tax is increasing once again, starting today for quarterly instalment payments of corporation tax, following the recent Bank of England interest rate rise to 1.25 percent. The rate of interest on late payment of most taxes will increase from 3.5 percent to 3.75 percent. The repayment interest rate remains unchanged at 0.5 percent.
The increase takes effect as follows:-
- Today, 27 June 2022 for late quarterly instalment payments of corporation tax; and
- 5 July 2022 for late non-quarterly instalments payments of corporation tax and other taxes.