Following the Bank of England’s decisions to reduce the base rate in response to the pandemic, HMRC have announced that their late payment interest rate will decrease to 2.6% with effect from 7 April 2020.

The rate, which applies to late payments of the main taxes and duties administered by HMRC, tracks at 2.5% above the base rate.

• For companies in the Corporation Tax quarterly payment regime, the change takes effect from 30 March.
  • The rate for underpayments of quarterly installments is reduced to 1.25% from 23 March 2020.
• The interest rate which HMRC will apply to overpayments of tax remains unchanged at 0.5%.

Links

COVID-19: Government support tracker. 

External links

HMRC: interest rates for late and early payment