UK - HMRC raises late payment interest from 6 January 2023

HMRC will raise interest rates on tax debt from 6 January following the latest 0.5% increase in the Bank of England base rate.

In response to the Bank of England interest rate increase to 3.5%, HMRC’s late payment interest rates will also increase with effect from 6 January 2023 as follows: -

1. late payment interest rate — 5.5% increasing to 6%

2. repayment interest rate — 2.0% increasing to 2.5%