We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
A summary of interest rate increases
On 15 December 2021, the Bank of England increased the base rate from 0.10% to 0.25%. As HMRC’s interest rates are linked to the Bank of England base rate, HMRC has increased the current late payment interest rate applied to the main taxes and duties to 2.75% from 2.60%. The rise affects all other HMRC late payment rates with an across-the-board increase of 0.15% to 2.75%.
These interest changes came into effect on:
- 27 December 2021 for quarterly instalment payments
- 4 January 2022 for non-quarterly instalment payments.
However, the repayment interest rate of 0.5% will remain unchanged since it was introduced in September 2009.
Read the full list of HMRC current and historical rates.
