Further rise in HMRC interest rates confirmed
Following the 13th consecutive increase in the Bank of England (BoE) base rate, HMRC’s interest rates on overpaid or underpaid tax will also increase. What are they and when will they take effect?
From 3 July 2023 the following rates will apply:
- Late corporation tax paid quarterly - 6%
- Interest on overpaid corporation tax - 4%
From 11 July, the rates for other taxes will apply:
- Late payment interest - 7.5%
- Interest on overpaid tax - 4%
In a press release HMRC states that the rate of late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time, while the rate of repayment interest fairly compensates taxpayers for loss of use of their money when they overpay. Anyone struggling to pay a tax debt should contact HMRC to try and agree a payment plan. This won’t prevent interest being charged, but will protect against penalties if the agreed terms are adhered to.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?