Yet another increase in the various rates of interest HMRC charges on unpaid taxes will kick in from 15 August. What is affected and what will the new rates be?
The Bank of England announced that it was increasing the base rate of interest by 0.5% on 4 August 2022. Inevitably, HMRC then announced that its range of penalty interest rates would also increase again. From 15 August, the following rates charged, and payable, by HMRC will apply:
- Late corporation tax paid quarterly – 2.75%
- Overpayment interest on corporation tax – 1.5%
From 23 August, the rates for other taxes, including income tax, will apply:
- Late payment interest – 4.25%
- Interest on overpaid tax – 0.75%