Due to the increase in the Bank of England base rate last week, HMRC has since announced the associated increase in its interest rates. The new rates will take effect from Monday 3 July 2023 for quarterly instalment payments, and Tuesday 11 July 2023 for non-quarterly instalments payments.
The two new increased rates of interest will be as follows:-
- late payment interest, set at base rate plus 2.5 percent, will increase to 7.5 percent from 7 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 increase to 4 percent from 3.5 percent.
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