[Company name]

HMRC Interest Rates to Fall Following Base Rate Cut

Talk to an expert

The Bank of England reduced its base rate from 4.25% to 4.00% on 7 August 2025. Because HM Revenue and Customs (HMRC) interest rates are directly linked to the base rate, the interest charged on late tax payments and the interest paid on repayments will also fall.


When the changes take effect


  • 18 August 2025 for quarterly instalment payments.
  • 27 August 2025 for non-quarterly instalment payments.

How the rates are set


Late payment interest is set at the Bank of England base rate + 4.0%. So, this will decrease to 8.0%.


Repayment interest is based on the Bank of England base rate - 1.0%, with a minimum floor of 0.5% So, the interest payable on tax repayments will reduce to 3.0%.


See: https://www.gov.uk/government/news/hmrc-interest-rates-update

October 8, 2025
CMA Flags Concerns Over Rising Fuel Margins

The Competition and Markets Authority (CMA) has published its latest monitoring report on fuel prices, highlighting increases in both pump prices and retailer margins.

Read article
October 6, 2025
Digital ID to Become Mandatory for Right to Work Checks

The government has announced its plan to introduce a new digital ID scheme, which will become the standard way to complete Right to Work checks by the end of the current Parliament.

Read article