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 the Taxes (Interest Rate) Regulations SI 1989/1297 (whereby interest on late payments to HMRC is set at bank base rate plus 4 percentage points and interest on overpayments is paid by HMRC at bank base rate minus 1 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:
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 the Taxes (Interest Rate) Regulations SI 1989/1297 (whereby interest on late payments to HMRC is set at bank base rate plus 4 percentage points and interest on overpayments is paid by HMRC at bank base rate minus 1 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:
.tmb-editorspic.jpg?sfvrsn=c9a7a0cc_1)
