The Bank of England Monetary Policy Committee announced on 7 August 2025 to reduce the Bank of England base rate to 4% from 4.25%.
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:
- 18 August 2025 for quarterly instalment payments
- 27 August 2025 for non-quarterly instalments payments
For further information please select the following link: HMRC interest rates update - GOV.UK