HMRC raises late payment interest from 21 February 2023

HMRC has increased interest rates on late payment tax debt to 6.5% from 21 February following the latest
increase in base rate.

The late payment and repayment interest rates applied to the main taxes and duties that HMRC
currently charges and pays interest on will from 21 February 2023 be 6.5% for the late payment
interest rate and 3% for the repayment interest rate.

This means that the late payment interest rate will increase by 0.5% to 6.5% from 21 February. The
rate last increased to 6% on 6 January.

Late payment interest is payable on late tax bills covering income tax, National Insurance
contributions, capital gains tax, stamp duty land tax, stamp duty and stamp duty reserve tax. The
corporation tax pay file rate also increases to 6%.

Repayment interest will also be increased from the current 2.5% rate to 3%.

Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly
instalment payments rises to 6.5% from 6%.

The interest paid on overpaid quarterly instalment payments and on early payments or corporation
tax not due by instalments rises to 3% from 2.5%.

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