Interest on late payments to HMRC set to rise next week
11 May 2022
On 5 May 2022 the Bank of England Monetary Policy Committee voted to increase the Bank of England base rate from 0.75% to 1% due to the recent rise in inflation. This will impact HMRC interest rates which are fixed at base rate plus 2.5%. Interest on late payments will change to 3.5% on 16 May for quarterly instalment payments and on 24 May for all other payments.
The interest on these payments serves as an encouragement for organisations to ensure their account is up to date with regards to HMRC liability.
The repayment interest rate on overpayments will not change and will remain at 0.5%. This will be the case until base rate rises above 1.5%. After this the rate will be base rate minus 1%.
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