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
-
P46 (car) submission deadline
-
Deadline to file paper self-assessment returns
-
MONTHLY FOCUS: TAX PLANNING FOR MARRIED COUPLES (TRADERS AND COMPANIES)
Married couples have been taxed separately rather than as a unit since 1990. There are a number of strategies married couples (and civil partners) can adopt to save tax. This Monthly Focus looks at business-related income planning.