UK HMRC has announced the revision of late payment and repayment interest rates following the base rate increase by the Bank of England to 1.75% on 4 August 2022. Late payment interest is set at the base rate plus 2.5% and repayment interest is set at the base rate minus 1%, with a lower limit (minimum rate) of 0.5%. With the latest increase in the base rate to 1.75%, the late payment and repayment interest rates are increased to 4.25% and 0.75%, respectively, from 23 August 2022. These rates apply in respect of most tax payments, including Corporation Tax, Income Tax, National Insurance contributions, Capital Gains Tax, VAT, and others. However, for Corporation Tax quarterly installment payments, which are generally due by large companies, the late payment interest rate is 2.75% with effect from 15 August 2022. For overpaid quarterly installment payments and on early payments of Corporation Tax not due by installments, the repayment interest rate is 1.50% from 15 August 2022.
Source Orbitax
