HMRC have updated their lists of late-payment and repayment interest rates following the reduction of the bank base rate to 4.25%. With effect from 28 May 2025 the late-payment interest rate is 8.25% and the repayment rate is 3.25% for most taxes. This is in line with the formulae set out in SI 1989/1297 whereby interest on late payments to HMRC is set at bank base rate plus four percentage points and interest on overpayments is paid by HMRC at bank base rate minus one percentage point.
For interest charged on underpaid quarterly instalment payments of corporation tax the rate is 6.75% and the rate on overpayments is 4% with effect from 19 May 2025.
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HMRC have updated their lists of late-payment and repayment interest rates following the reduction of the bank base rate to 4.25%. With effect from 28 May 2025 the late-payment interest rate is 8.25% and the repayment rate is 3.25% for most taxes. This is in line with the formulae set out in SI 1989/1297 whereby interest on late payments to HMRC is set at bank base rate plus four percentage points and interest on overpayments is paid by HMRC at bank base rate minus one percentage point.
For interest charged on underpaid quarterly instalment payments of corporation tax the rate is 6.75% and the rate on overpayments is 4% with effect from 19 May 2025.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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