The interest rates for late payment will be increased from 2.75% to 3%. This will take effect on:

• 13th November 2017 for quarterly repayments
• 21st November 2017 for non-quarterly repayments. 

The Bank of England Monetary Policy Committee has voted to increase the base rate to 0.5%. Because the HMRC interest rate is linked to the base rate this then increases the interest rate. 

Rates for repayment will remain the same. 

On a personal level, rising interest rates could also increase the cost of borrowing and increase an interest in saving. For the economy as a whole, inflation may tend to be slower and unemployment could rise. 

Amid criticism the Bank of England governor Mike Carney has defended the move

"To be clear, even after today’s rate increase, monetary policy will provide significant support to jobs and activity." 

You can find more detailed information on interest rates for early and late payments here on the GOV.UK website. However, for the best information and advice relating to your personal and business affairs, please contact us.