Rise in Interest rates – How this may impact you!
11th November 2022
On the 3 November 2022, the Bank of England announced that it will be increasing the base rate of interest from 2.25% to 3%, in its continued efforts to curb inflation.
This will not only have a direct impact on loan repayments, savings and investments but also HMRC’s late payment and repayment interest.
HMRC’s rates of late payment interest and repayment interest (other than for Corporation Tax quarterly instalments) are set according to the base rate as follows:
- Late Payment – Set at the base rate of 3% plus 2.5%
- Repayment – Set at the base rate of 3% minus 1% (with a 0.5% lower limit)
These increases will take effect from 22 November 2022.
This has been brought forward to 14 November 2022 for Corporation Tax quarterly instalment payments.
With rates higher than they have been in over a decade, it is now more important than ever to ensure payments are made on time!
Disclaimer - All information in this post was correct at time of writing.
