UK - HMRC late payment & repayment interest rates to increase again from 22 May 2023
As HMRC interest rates are linked to the Bank of England base rate, the increase from 4.25% to 4.5% last week has triggered another increase in rates for late payments and repayment of tax.
HMRC’s late payment interest rates will increase with effect from 22 May 2023 as follows: -
1. Late payment interest rate — 6.75% increasing to 7%
2. Repayment interest rate — 3.25% increasing to 3.5%
In January 2022 the HMRC late payment interest rate was 2.75% - therefore there has been a 155% rate increase over the last 1 ½ years!