HMRC interest rates for late payments will be going up following the Bank of England interest rate rise to 0.25%.
The Bank of England Monetary Policy Committee voted on 16 December 2021 to increase the Bank of England base rate to 0.25% from 0.1%. HMRC interest rates are linked to the Bank of England base rate, therefore, HMRC interest rates for late payments will also increase.
These changes will come into effect on:
- 27 December 2021 for quarterly instalment payments
- 4 January 2022 for non-quarterly instalments
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 — 2.75% from 4 January 2022
- repayment interest rate — 0.5% from 29 September 2009
Corporation Tax pay and file
- from 4 January 2022 late payments will be set at 2.75% and repayments at 0.50%.
- from 4 January 2022 the same rates (late at 2.75% and repayments at 0.50%) will also apply to Corporation Tax pre-pay and file Stamp Duty Reserve Tax (to 30 September 1999) and Petroleum Revenue Tax – Reg 3AA
- from 4 January 2022 the same above rates will apply to Corporation Tax Self Assessment, from normal due date