On Thursday 22 June 2023, the Monetary Policy Committee raised the Bank of England’s base interest rate by 0.5 percentage points to 5%.
The base rate influences many other rates in the UK, including late payment fees.
HMRC has announced that it will rise late payment interest fees in line with the increase of 0.5 percentage points from 3 July 2023 for quarterly instalment payments and 11 July for non-quarterly payments.
The rate of interest on unpaid instalments of corporation tax liabilities is calculated as rate plus one, the interest for the late payment of other taxes is calculated as base rate plus 2.5 and the rate paid by HMRC on the overpayment of tax is calculated as rate minus one.
The next rate decision will be on Thursday 3 August 2023.
If you’d like to discuss your circumstances with our EQ Taxperts, please call one of our offices or email taxation@eqaccountants.co.uk.