Interest on late paid tax rises to 3%

The rates on interest on late paid tax will increase from November 2017.


This follows the Bank of England Monetary Policy Committee decision on 2 November to increase the Bank of England base rate to 0.5%. HMRC interest rates are linked to the Bank of England base rate.


The interest rate for late payment will rise from 2.75% to 3.0% from 21 November 2017. This rate applies to almost all taxes and duties.


The exception is quarterly instalment payments of corporation tax, for which the rate rises from 1.25% to 1.50% from 13 November 2017.


Repayment interest remains unchanged, at 0.5%.


A full list of current and previous interest rates is at Interest rates for late and early payments