The Bank of England Monetary Policy Committee announced a rate hike of 50bp from 3.5% to 4%.
HMRC’s interest rate is linked to the base rate and therefore as a consequence of this the late payments and repayments will increase.
The changes will come into effect on :
13 February 2023 for quarterly instalment payments
21 February 2023 for non quarterly instalment payments
The Bank of England will next review the interest rate March 23rd. Should inflation remain elevated we may well see another rate hike as the BOE do there best to bring inflation down to 2% in a way that helps to sustain growth in the economy and healthy employment levels. To read the summary of the Bank of England’s latest meeting click here.