Following the recent increase in the Bank of England base rate to 0.75%, HMRC has announced changes to the rates of interest they charge.
The new rates of interest charged on underpaid quarterly instalment payments of 1.75% (was 1.50%), took effect on 13 August 2018.
The interest rate for all other non-quarterly instalment payments applied to the main taxes and duties that HMRC currently charges, will take effect from 21 August 2018 when the late payment interest rate increases to 3.25% (from 3.00%).
The repayment interest rates applied to the main taxes and duties that HMRC pays interest on remains unchanged at 0.5%.
