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.
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.
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