Taxation: Interest Payments
2026-06-14 · Treasury · 9744 · Official question
Question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact methodology used to set interest rates on tax underpayments and repayments on levels of parity between taxpayers and HMRC.
Answer
HMRC treats interest in line with other tax authorities and financial institutions by having a differential between the interest it pays, and the interest charged. This differential is currently 5ppt, with both Repayment Interest and Late Repayment Intere...