On 19th March, the Bank of England reduced the base rate for the second time in just over a week, in a further emergency response to protect the economy against the rapidly rising COVID-19 pandemic, reducing it to 0.1%.
The Bank of England initially reduced it from 0.75% to 0.25%, and have now reduced it further from 0.25% to 0.1%.
These measures are to support business and consumer confidence and to bridge across the economic disruption associated with the pandemic.
Following the reduction in the Bank of England’s base rate, interest charged on underpaid quarterly installment payments has reduced from 1.75% to 1.25%, as of 23 March 2020. Interest on overpaid quarterly installment payments and on early payments of Corporation Tax which are not due by installments, remains the same at 0.50%.
All other interest rates for late and early payments remain the same.
Please get in touch with the tax team if you have any questions or concerns.