HMRC late payment interest rates to be revised after Bank of England increases base rate

F.P. Report

LONDON: HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 0.75%.

The Bank of England Monetary Policy Committee voted on 17 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 will come into effect on:

28 March 2022 for quarterly instalment payments

5 April 2022 for non-quarterly instalments payments

The repayment interest rate will remain at 0.5%. The repayment rate is set at Bank Rate minus 1%, with a 0.5% lower limit.