HMRC late payment interest rates to be revised after Bank of England increases base rate

Dan Insley

Article by:

Dan Insley

Business insightsTax planning & VAT

The Bank of England Monetary Policy Committee announced on 11 May 2023 that it would increase the Bank of England base rate to 4.5% from 4.25%. HMRC interest rates are linked to the Bank of England base rate. As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase.

These changes will come into effect on:

  • 22 May 2023 for quarterly instalment payments, and
  • 31 May 2023 for non-quarterly instalments payments.

See: Rates and allowances: HMRC interest rates for late and early payments – GOV.UK (