UK – HMRC interest rates increase again
As HMRC interest rates are linked to the Bank of England base rate, the 3 August increase from 5% to 5.25% has triggered another increase in rates for late payments and repayment of tax.
Therefore, the new rates will take effect from Tuesday, 22 August 2023.
The two new increased rates of interest will be as follows:-
1. Late payment interest rate — 7.5% increasing to 7.75%
2. Repayment interest rate — 4% increasing to 4.25%