The Bank of England base rate rose on 2 November 2017 from 0.25% to 0.50%, and this has prompted an increase in all of the interest rates taxpayers are charged when paying tax late.
From 21 November the interest rate for late paid tax, for almost every tax, rises from 2.75% to 3%. There is an exception for corporation tax paid by quarterly instalments which increased on 13 November from 1.25% to 1.50%.
The interest rate paid by HMRC on overpaid tax has not changed. This remains at 0.5% in every case, including for overpaid quarterly instalments of corporation tax.
Note the official rate of interest for beneficial loans has not changed, and that remains at 2.5% for 2017/18.
For further details please contact DFC Accountants in Cardiff, Wales.