HMRC interest rates for late payments are revised following the Bank of England interest rate rise to 0.75%.
The Bank of England Monetary Policy Committee voted on 17th March 2022 to increase the Bank of England base rate to 0.75% from 0.50%. HMRC interest rates are linked to the Bank of England base rate.
As a consequence of the change in the base rate, HMRC interest rates for the late payment will increase.
These changes come into effect on:
- 28th March 2022 for quarterly instalment payments
- 5th April 2022 for non-quarterly instalments payments
Late payment and repayment interest rates
The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:
- late payment interest rate — 3.25% from 5th April 2022
- repayment interest rate — 0.5% from 29th September 2009