HMRC interest rates reduced
Following the Bank of England’s decision to reduce the base rate from 5% to 4.75%, HM Revenue and Customs (HMRC) have announced a reduction in their late payment interest rates.
HMRC interest rates track the base rate. Late payment interest (payable if you pay tax late) is set at base rate plus 2.5%. Repayment interest (which HMRC pay you on refunds or overpayments) is set at base rate minus 1%, with a minimum rate of 0.5%.
The following rates will therefore come into effect:
- Late payment interest rate will reduce to 7.25%
- Repayment interest will reduce to 3.75%.
The reductions come into effect from the following dates:
- 18 November 2024 for quarterly instalment payments; and
- 26 November 2024 for non-quarterly instalments payments.
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