HMRC is increasing interest rates for late payments for most taxes, after the Bank of England’s decision to increase the base rate to 5.25%.

From 14 August 2023, the rate for late paid corporation tax quarterly instalment payments is 6.25%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments increases to 5%.

The new rate for other late paid taxes is 7.75% and repayment interest rate rises to 4.25%. These take effect from 22 August 2023.