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% |