The Bank of England Monetary Policy Committee announced on 18 December 2025 to reduce the Bank of England base rate to 3.75% from 4%.
HMRC interest rates are linked to the Bank of England base rate.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will reduce.
These changes will come into effect on:
- 29 December 2025 for quarterly instalment payments
- 9 January 2026 for non-quarterly instalments payments
For further information please select the following link: HMRC revises interest rates for late payments - GOV.UK.