HMRC interest rates increase
The Bank of England Monetary Policy Committee announced on 11th May 2023 that it would increase the Bank of England base rate to 4.5% from 4.25%. HMRC late payment interest rates are linked to the Bank of England base rate, being set at base rate plus 2.5%. After the recent change in the base rate, HMRC interest rates for both late payments and repayments will increase.
Repayment interest rates
These will also increase, as they are also linked to the Bank of England base rate. Repayment interest is set at base rate minus 1%, and will therefore also increase.
New rates
- Late payment interest rate — 7% from 31st May 2023
- Repayment interest rate — 3.5% from 31st May 2023
If you have an amount of tax that has not been paid, or are struggling to make a payment that’s due soon, please remember that it’s far better to speak to HMRC before they contact you!
Ideally, we’d recommend that you contact them before the tax amount became due, to agree a payment arrangement. They’re far more receptive before the amount is late. If you’re able to contact them to suggest a realistic payment plan, that you can stick to, HMRC are more likely to be amendable now than they ever have been.
You can contact HMRC using the various details here, depending on the type of tax that is due. Please remember, if we can help at all, please get in touch!
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