HMRC has revised interest rates with late payment bills charged 6.75% from 13
April, the highest level since January 2008.
The late payment and repayment interest rates follow the rise in the Bank of
England base rate to 4.25% on 23 March and are applied to the main taxes and
duties that HMRC currently charges and pays interest. The rates will rise to:
- late payment interest rate - 6.75% from 13 April 2023
- repayment interest rate - 3.25% from 13 April 2023.
This means that the late payment interest rate will increase by 0.25% to 6.75%
from 13 April. This is the highest rate since the start of the financial crisis
in November 2008. The previous increase to the rate was to 6.5% on 21 February.
Late payment interest is payable on late tax bills covering income tax, National
Insurance contributions, capital gain tax, stamp duty land tax, stamp duty and
stamp duty reserve tax. The corporation tax pay and file rate also increases to
6.75%.
Internet link: GOV.UK