HMRC – interest rates

HMRC’s interest rates on underpaid and overpaid tax and duties are linked to the Bank of England base rate. On 8 May 2025, the BOE base rate was cut by 0.25 percentage points, to 4.25%.

HMRC has updated its guidance to include the new rates applying from:

• 19 May 2025 for the purpose of corporation tax quarterly instalment payments; and
• 28 May 2025 for other payments of tax and duties.

The headline rate of interest charged by HMRC on most underpaid taxes and duties will fall from 8.5% to 8.25% from 28 May 2025.

Source: www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates.