HMRC have revised their late-payment and overpayment interest rates, following the Bank of England’s 6 August 2025 decision to reduce the bank base rate to 4%.
From 27 August 2025, the late-payment interest rate for most taxes will be 8% and the repayment rate will be 3%.
For quarterly instalment payments of corporation tax, from 18 August 2025 interest on underpayments will be charged at 6.5% and interest on overpayments will be paid at 3.75%.
HMRC have revised their late-payment and overpayment interest rates, following the Bank of England’s 6 August 2025 decision to reduce the bank base rate to 4%.
From 27 August 2025, the late-payment interest rate for most taxes will be 8% and the repayment rate will be 3%.
For quarterly instalment payments of corporation tax, from 18 August 2025 interest on underpayments will be charged at 6.5% and interest on overpayments will be paid at 3.75%.
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