Blog

15/10/18
The Bank of England Monetary Policy Committee voted unanimously to increase the Bank of England base rate to 0.75% on 2 August 2018. HMRC interest rates are linked to the Bank of England base rate and, as a consequence of the change, HMRC interest rates for late payment will be increased.
These changes came into effect on:
• 13 August 2018 for quarterly instalment payments;
• 21 August 2018 for non-quarterly instalment payments.

Repayment interest rates remain unchanged. The current late payment interest rate applied to the main taxes and duties that HMRC currently charges has been 3% since 21 November 2017, so this is expected to rise to 3.25%.

However, HMRC will update its information on the interest rates for late payments shortly. There’s no news from HMRC as to whether there will be any change in the official rate of interest, used to calculate tax on employee loans and the pre-owned asset tax charge. This rate has been 2.5% since 6 April 2017.