Following the recent increase in the Bank of England base rate from 0.25% to 0.50% HMRC has announced there will be changes to the rates of interest they charge.
The BoE’s Monetary Policy Committee voted 5-4 in favour of raising interest rates by 25 basis points to 0.50% in a move to stem rising inflation.
The late payment interest rate applied to the main taxes and duties that HMRC charges interest on will increase as HMRC interest rates are linked to the Bank of England base rate.
These changes will come into effect on:
- 14 February 2022 for quarterly instalment payments
- 21 February 2022 for non-quarterly instalments payments
The repayment interest rates applied to the main taxes and duties that HMRC pays interest on will remain unchanged at 0.5%. This rate has been in place since September 2009.
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Source: Informanagement