Further increases to HMRC interest rates: August 2023 update

With the rate of inflation remaining high, the Bank of England has once again increased its interest base rate, now to 5.25% from 3 August 2023. Following this, HMRC interest rates have increased similarly, and for most taxes these are as follows:

Effective date Late payment Repayment
11 October 2022 4.75% 1.25%
22 November 2022 5.50% 2.00%
6 January 2023 6.00% 2.50%
21 February 2023 6.50% 3.00%
13 April 2023 6.75% 3.25%
31 May 2023 7.00% 3.50%
11 July 2023 7.50% 4.00%
22 August 2023 7.75% 4.25%

 

For corporation tax quarterly instalment payments the increases take effect sooner:

Effective date Underpayment Overpayment
3 October 2022 3.25% 2.00%
14 November 2022 4.00% 2.75%
23 December 2022 4.50% 3.25%
13 February 2023 5.00% 3.75%
3 April 2023 5.25% 4.00%
22 May 2023 5.50% 4.25%
3 July 2023 6.00% 4.75%
14 August 2023 6.25% 5.00%

 

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