The rate of late-payment interest for most taxes will be increased to 3.75% from 5 July 2022. The repayment interest rate will remain at 0.5%.
The rate of interest on underpaid quarterly instalment payments will increase to 2.25% and the rate of repayment interest to 1% from 27 June 2022.
The changes follow the Bank of England’s decision on 16 June 2022 to increase the bank base rate from 1% to 1.25%.
