Yet another interest rate increase on the way
Late payment interest rates will increase from next week because of a further rise in the Bank of England’s base rate. What are the new charges?
Following the announcement that inflation in February unexpectedly increased, the Bank of England swiftly announced another rise in the base interest rate. As HMRC’s late payment and repayment interest rates are linked to the base rate, they will increase again too. From 3 April 2023 the following rates will apply:
- Late corporation tax paid quarterly - 5.25%
- Interest on overpaid corporation tax - 4%
From 13 April, the rates for other taxes will apply:
- Late payment interest - 6.75%
- Interest on overpaid tax - 3.25%
Any overdue tax you owe will be subject to the higher rates from next week until the time payment is made.
Related Topics
-
Cut your losses to get a tax refund
You invested in a company that’s now in dire straits and your shares are worth next to nothing. Selling them isn’t an option so how do you go about getting some tax back on your bad investment?
-
HMRC updates advisory fuel rates from 1 March 2026
HMRC has published the latest advisory fuel and electric rates (AFRs) for company cars, effective from 1 March 2026. Several rates have changed since the previous quarter. What should employers be aware of?
-
5 April deadline approaching for key tax relief claims
With the end of the 2025/26 tax year now less than seven weeks away, business owners and company directors should remember that several valuable reliefs and elections must be made before 5 April. Which opportunities are about to close?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.