HMRC late payment interest rates to be cut

HMRC late payment interest rates to be cut
Posted on February 20, 2025

Business, HMRC, Self Assessment, Tax Penalties

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/

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