HMRC wasted no time in raising interest rates for late payments following the rise in the Bank of England base rate at the beginning of August
The BoE’s Monetary Policy Committee raised the borrowing rate from 0.5% to 0.75%, in a move to stem rising inflation, currently running at 2.4%.
HMRC interest rate changes will come into effect on 13 August 2018 for quarterly instalment payments and 21 August 2018 for non-quarterly instalment payments. Repayment interest rates remain unchanged.
The changes will see the late payment rate increase to 3.25% and repayment rate moves to 0.75%.
The department intends to provide updated information on the interest rates for late payments shortly. Until the announcement, late payment interest rates were fixed at 3% and repayment interest rates at 0.5%.
Report by Rob Munro
