HMRC to increase payment interest
Yes just when we are all paying more NI and our electricity bills, HMRC has decided to increase it's late payment interest.
HMRC has announced that interest rate will increase with effect from 15 August 2022 for late quarterly instalment payments, and that late payment interest for other late payments will increase from 23 August 2022.
The change comes after The Bank of England (BoE) Monetary Policy Committee voted on 4 August 2022 to increase the BoE base rate to 1.75% from 1.25%, this is due to HMRC interest rates being linked to the BoE base rate.
The repayment interest rate will increase to 0.75%. The repayment rate is set at bank rate minus 1%, with a 0.5% lower limit.
Thank you HMRC, just what we all needed!