Following the Bank of England’s Monetary Policy Committee vote on 16th December 2021 to increase the base interest rate, HMRC will also be increasing the interest rate for late payments.
The base rate has increased from 0.1% to 0.25% and HMRC late payment interest rates are linked to this, although repayment interest rates will currently remain the same.
The changes will come into effect from 27th December for quarterly instalment payments and 4th January 2022 for non-quarterly instalment payments.