Following the change in the base rate, HMRC have revised the interest rate that they charge on late paid income tax, National Insurance, capital gains tax, stamp duty land tax, stamp duty and stamp duty reserve tax. From 21 August 2018, the rate charged is increase to 3.25%. Previously, the rate was 3%, which applied from 21 November 2017 to 20 August 2018. The rate applying to corporation tax is similarly increased to 3.25% from 21 August 2018. Where payment is made by quarterly instalment, the rate rise is effective from 13 August 2018.
The rate of repayment interest paid by HMRC remains unchanged at 0.5%
Full details of the interest charged and paid by HMRC for late and early payments, can be found on the Gov.uk website.