Interest rate reduced on underpaid quarterly corporation tax instalments

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.

HMRC has now announced that the interest rate has dropped even further, to 1.10% from 30 March 2020.

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

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

This too has now seen a further fall, to 2.60% from 7 April 2020.

For the latest developments, check out our Coronavirus Knowledge Hub.