New Rise in Penalty Interest Rates

From the 15th August another increase in various rates of interest HMRC charges on unpaid taxes will kick in. What are the new rates and what’s affected? 

The Bank of England recently announced that it was increasing the base rate of interest by 0.5%.  HMRC then followed suit and announced that its penalty interest rates would also increase again.  

The following rates charged, and payable, by HMRC will now apply: 

• Late corporation tax paid quarterly – 2.75% 
• Overpayment interest on corporation tax – 1.5% 

The rates for other taxes, including income tax, will apply from 23 August: 

• Late payment interest – 4.25% 
• Interest on overpaid tax – 0.75%