HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 1%.
The Bank of England Monetary Policy Committee voted on 5 May 2022 to increase the Bank of England base rate to 1% from 0.75%.
HMRC interest rates are linked to the Bank of England base rate.
As a consequence of the change in the base rate, HMRC interest rates for the late payment will increase. These changes will come into effect on:
16 May 2022 for quarterly instalment payments
24 May 2022 for non-quarterly instalments payments
The repayment interest rate will remain at 0.5%. The repayment rate is set at Bank Rate minus 1%, with a 0.5% lower limit.