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%.
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