HM Revenue & Customs interest rates

Interest rates charged on late payments and paid on overpayments for corporation tax quarterly instalment payments (QIPs) and also early payments of corporation tax not due by instalments have now been cut, HM Revenue & Customs (HMRC) confirm.

The new rates took effect from 16 February 2009.

The rates covering late payments and overpayments of all other direct taxes, indirect taxes and national insurance contributions remain unchanged this month.

HMRC continues to look at ways to simplify and harmonise the rules for interest charged and paid across all taxes and duties. In June 2008 a consultation document was published 'Interest - working towards a harmonised regime'. This was followed in November 2008 by a further consultation document. Both documents are available to view on the HMRC website.

Full details of the rate changes are available on HMRC's website at hmrc.gov.uk/news/interest-rates1602.htm.