Another rise in penalty interest rates looms

The Bank of England announced that it was increasing the base rate of interest by 0.5% on 4 August 2022.  Inevitably, HMRC then announced that its range of penalty interest rates would also increase again. From 15 August, the following rates charged, and payable, by HMRC will apply:

• Late corporation tax paid quarterly - 2.75%
• Overpayment interest on corporation tax - 1.5%

From 23 August, the following rates for other taxes, including income tax, will apply:

• Late payment interest - 4.25%
• Interest on overpaid tax - 0.75%