On 17 December 2021, the UK HMRC has announced the revision of late payment interest rates following the base rate increase to 0.25% by the Bank of England.

The Bank of England Monetary Policy Committee voted on 16 December 2021 to increase the Bank of England base rate to 0.25% from 0.1%. HMRC interest rates are linked to the Bank of England base rate.

As a consequence of the change in the base rate, HMRC interest rates for late payments will increase. These changes will come into effect on:

  • 27 December 2021 for quarterly installment payments
  • 4 January 2022 for non-quarterly installments payments

Repayment interest rates remain unchanged.