HMRC has revised its interest rates from 13 April, following the Bank of England’s recent decision to increase the base rate.

As HMRC interest rates are linked to the Bank of England base rate, the rise in the base rate to 4.25%, announced by the Bank of England on 23 March, has triggered changes to HMRCs late payment and repayment interest rates. These increases apply to the main taxes and duties that HMRC currently charges and pays interest on. 

From 13 April, the rates rose to:

•         late payment interest rate — 6.75%

•         repayment interest rate — 3.25%

This means that the late payment interest rate has increased by 0.25%, this is the highest rate since the start of the financial crisis in November 2008. Late payment interest is payable on late tax bills covering Income Tax, National Insurance contributions, Capital Gains Tax, Stamp Duty Land Tax, Stamp Duty and Stamp Duty Reserve Tax. The Corporation Tax pay and file rate has also increased to 6.75%.

For more information, please contact us.

Internet link: GOV.UK