Following from the Bank of England interest rates increase on 3 November 2022, HMRC is increasing the interest rates charged on tax debts.
The rate on late and underpayments of tax will increase to 5.50% from 22 November 2022 and will be applicable to all the main taxes and duties.
This is a 0.75% increase from the 4.75% rate that HMRC have charged since 11 October 2022 and will be the highest rate of interest charged since December 2008.
Also increasing on 22 November is the rate of interest that HMRC pays on over and early payments of tax and this will increase by 0.75% to 2.00%.
For more information on how this may impact you, please contact any member of GMcG’s Tax Team.
