HMRC recently announced a further increase in its interest rates after the Bank of England base rate increased to 2.25 percent last month. Details of the new rates which take effect from today Monday 3 October 2022 for quarterly instalment payments and Tuesday 11 October 2022 for non-quarterly instalments payments are available here.
There are two new increased rates of late interest:-
- late payment interest, set at base rate plus 2.5 percent, which increases to 4.75 percent; and
- repayment interest, set at base rate minus 1 percent, with a lower limit of 0.5 percent (known as the ‘minimum floor’), which increases to 1.25 percent.