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HMRC late payment interest rate

HMRC has revised inter­est rates with late pay­ment bills charged 6.75% from 13 April, the high­est lev­el since Jan­u­ary 2008.

The late pay­ment and repay­ment inter­est rates fol­low the rise in the Bank of Eng­land base rate to 4.25% on 23 March and are applied to the main tax­es and duties that HMRC cur­rent­ly charges and pays inter­est. The rates will rise to:

  • late pay­ment inter­est rate — 6.75% from 13 April 2023
  • repay­ment inter­est rate — 3.25% from 13 April 2023.

This means that the late pay­ment inter­est rate will increase by 0.25% to 6.75% from 13 April. This is the high­est rate since the start of the finan­cial cri­sis in Novem­ber 2008. The pre­vi­ous increase to the rate was to 6.5% on 21 Feb­ru­ary.

Late pay­ment inter­est is payable on late tax bills cov­er­ing income tax, Nation­al Insur­ance con­tri­bu­tions, cap­i­tal gain tax, stamp duty land tax, stamp duty and stamp duty reserve tax. The cor­po­ra­tion tax pay and file rate also increas­es to 6.75%.

Inter­net link: GOV.UK