Following the Bank of England’s base rate cut, HMRC has cut the interest rates charged on underpaid corporation tax quarterly instalments and interest paid on overpaid quarterly payments
On 19 March the Bank slashed the base rate for the second time in just over a week in a further emergency response to the coronavirus pandemic, reducing it from 0.25% to 0.1%.
Now 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.
All other interest rates for late and early payments remain the same.