From 6 April, HMRC interest rates for late payments will be increased by 1.5% for all taxes after a change in legislation – as announced in the autumn Budget 2024.
As a result, from 6 April, the new rate to apply to most late paid tax rises to 8.5% but repayment interest remains 3.5%.
The rate for late paid corporation tax quarterly instalment payments increases to 7%, while the rate on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is unchanged at 4.25%.
HMRC says the differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits.
