
HMRC will be increasing the late payment rates for tax returns following the Bank of England's rise in interest rates.
The Bank of England's committee voted to raise the base rate from 1.25% to 1.75%, In turn HMRC announced it will be revising interest rates to reflect this change.
The late payment increases will come into effect on:
15 August 2022 for quarterly instalment payments
23 August 2022 for non-quarterly instalment payments.
The repayment interest rate will increase to 0.75%. The rate is set at the bank rate minus 1%, with a 0.5% lower limit.
The Bank of England's decision to raise interest rates by 0.5% was the highest increase in 27 years, taking UK rates to the highest level since the end of 2008.
Talk to us about your tax return.
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