HMRC increase interest rates

Until inflation is under control, HMRC have no option but to adjust their interest rates in accordance with changes decreed by the Bank of England.

There are two rates to consider, both linked to the Bank of England base rate:

• Late payment interest, set at base rate plus 2.5%
• Repayment interest, set at base rate minus 1%, with a minimum rate of 0.5% payable.

From August 22^nd, 2023, the interest rates have been set at:

• 7.75% for late payment
• 4.25% for repayment

It is recommended to check HMRC interest rates each time the Bank of England adjust the base rate.

For more information or advice, please do get in touch with your local Whitings LLP Office.

Disclaimer - All information in this post was correct at time of writing.