Late payment interest rates will increase from next week because of a further rise in the Bank of England’s base rate. What are the new charges?
Following the announcement that inflation in February unexpectedly increased, the Bank of England swiftly announced another rise in the base interest rate. As HMRC’s late payment and repayment interest rates are linked to the base rate, they will increase again too.
From 3 April 2023 the following rates will apply:
- Late corporation tax paid quarterly – 5.25%
- Interest on overpaid corporation tax – 4%
From 13 April, the rates for other taxes will apply:
- Late payment interest – 6.75%
- Interest on overpaid tax – 3.25%
Any overdue tax you owe will be subject to the higher rates from next week until the time payment is made.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.