HMRC have updated their document Rates and allowances: HMRC interest rates for late and early payments. The document allows taxpayers to “find the interest rates that apply on late or early payments across all tax regimes”.
For “the main taxes and duties”, the following rates apply from 13 April 2023:
- The rate charged on late payments is set at 6.75%.
- The rate paid on repayments is set at 3.25%.
In each case, this is the third increase this year. The rates at the start of 2023 were 5.5% and 2% respectively.
The HMRC guidance also contains other figures, however. Under corporation tax self-assessment, for example, the interest charged on underpaid quarterly instalment payments increases from 5% to 5.25% from 3 April (rather than 13 April) 2023. Interest paid on overpaid quarterly instalment payments and on early CT payments not due by instalments increases from 3.75% to 4%, again from 3 April 2023.
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