Interest rate reduced on underpaid quarterly corporation tax instalments

24th March 2020

Following the change in the Base Rate from 0.25% to 0.1%, HMRC has stated that from 23 March, the interest charged on underpaid quarterly corporation tax instalment payments is set at 1.25%, down from 1.75%.

This is the first change since August 2018.

Interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments remains at 0.5% and is unchanged since September 2009.

Further Interest rate reductions on 30 March 2020

Interest on late payments of other taxes was reduced from 3.25% to 2.75% with effect from 30 March 2020

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