Following the increase in the Bank of England base rate to 0.75% from 2 August 2018, HM Revenue and Customs has announced an increase in the rates of interest on late paid tax. HM Revenue and Customs interest rates are linked to the Bank of England base rate.
The rates of interest for late payment will increase from 3.00% to 3.25% from 21 August 2018.
The above rate applies to almost all taxes and duties.
The exception is quarterly instalment payments of corporation tax, for which the rate rises from 1.50% to 1.75% from 13 August 2018.
Repayment interest remains unchanged at 0.5%.