Following the recent cut in the Bank of England base rate from 0.25% to 0.1%, HMRC has announced changes to the rates of interest they charge.
The new late payment interest rate, applied to the main taxes and duties, took effect from 30 March 2020, when the interest rate was set at 2.75% (reduced from 3.25%). This was the first change since August 2018.
The rate of interest charged on underpaid quarterly instalment payments of Corporation Tax is 1.1% as of 30 March 2020. The rate has been set at 1.75% since August 2018 and was briefly reduced to 1.25% on 23 March 2020 before the latest cut took effect.
The repayment interest rates applied to the main taxes and duties remains unchanged at 0.5%.
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