HMRC late payment interest rates to be cut

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20th February 2025 Posted by -

HMRC late payment interest rates to be cut

Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly.

Late payment interest will reduce to 7% from 7.25%. Repayment interest – paid on tax repayments – will be reduced to 3.5%.

The change will come into effect from:

  • 17 February 2025 for quarterly instalment payments.
  • 25 February 2025 for non-quarterly instalments payments.

See: https://www.gov.uk/government/