HMRC is increasing interest rates for late payments for most taxes, after the Bank of England’s decision to increase the base rate to 4%.
From 13 February 2023, the rate for late paid corporation tax quarterly instalment payments is 5%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments increases to 3.75%.
The new rate for other late paid taxes is 6.5% and repayment interest rate rises to 3%. These take effect from 21 February 2023.
