Change in interest rates

By August 25, 2023 No Comments

Attention Taxpayers!


Reflecting on the Bank of England’s base rate hike from 4.5% to 5.25%, HMRC has increased the interest rate on late tax payment to 7.75%, which is 2.5% plus the base rate. This alteration became effective on the 22nd of August, 2023, which also involves an elevation in repayment interest rate to 4.25%.

This modification follows a previous interest rate increase that took place on the 11th of July, 2023. At the time the interest rate for both late payment and repayment if you overpay was adjusted to 7.5% and 4%, respectively.

Taxpayers will have to keep a note of these recent changes to avoid incurring additional charges.

Rest assured, we at Parker & Co. will always aim to be resourceful as we inform our clients about significant updates!

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