interest rates Archives - WRLO Accountants

HMRC cuts late payment interest rate to 8%

WRLO Accountants — Mon, 25 Aug 2025 16:13:34 +0000

HMRC will reduce late payment and repayment interest rates from 27 August following the 0.25% cut in the base rate earlier in the month. The Bank of England cut the base rate to 4% on 7 August, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 27 August, the late payment interest rate will be cut to 8.0% from 8.25%. The repayment interest rate will be cut to 3% from 3.25% from 27 August. HMRC late payment interest is set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Following the cut to the base rate, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: ‘The small business community will now look to lenders to reflect this rapidly across their offering, cutting the cost of finance. They will also want to see the Bank of England set out a clear path for the rest of the year, with a further easing in the base rate badly needed to reduce the financial strain they are under. ‘There will be no growth in the economy overall […]

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HMRC cuts late payment interest rate to 8.25%

WRLO Accountants — Tue, 20 May 2025 09:11:52 +0000

HMRC will reduce late payment and repayment interest rates from 28 May following the 0.25% cut in the base rate last week. The Bank of England cut the base rate to 4.25% on 8 May, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 28 May, the late payment interest rate will be cut to 8.25% from 8.5%, which was the highest rate charged since February 2000. The repayment interest rate will be cut to 3.25% from 3.5% from 28 May. HMRC late payment interest is set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Following the cut to the base rate David Bharier, Head of Research at the British Chambers of Commerce said: ‘Many firms, desperate for financial respite, will be keen to see further rate cuts in the months ahead. ‘National insurance hikes, alongside other cost pressures, are already having an impact, including increased prices, hiring freezes, and reduced investment. ‘The next few months are likely to remain volatile and the full impacts of a global trade war are still uncertain. Businesses will be […]

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HMRC cuts late and repayment interest rates

WRLO Accountants — Tue, 04 Mar 2025 17:15:20 +0000

HMRC will reduce late payment and repayment interest rates from 25 February following the cut in the base rate. The Bank of England cut the base rate to 4.5% on 6 February, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 25 February, the late payment interest rate will be cut to 7.0% from 7.25%. The repayment interest rate will be cut to 3.5% from 3.75% from 25 February. HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 5.5% from 5.75% from 17 February, a week earlier than the main late payment rate change. Internet link: GOV.UK

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