HMRC Interest Rates
HMRC Interest Rates
Following the Bank of England’s announcement on 2 February 2023 that the base rate will rise to 4%, HMRC interest rates are also increasing by 0.5%, to 6.5% for late payment interest and 3% for repayment interest, from 21 February 2023.
The rates, which apply to the main taxes and duties administered by HMRC, track the base rate. The late payment rate is set at 2.5% above the base rate. The repayment rate is set at a 'minimum floor' of 0.5% until the base rate reaches 1.5%, it then increases with the base rate.