Following the Bank of England’s reduction of the base rate of interest to 5% on 1 August, HMRC has finally announced they will follow suit, reducing the late payment interest rate by 0.25% from 20 August 2024.
This means that the late interest payment rate will be cut to 7.5% from the record 7.75% level it has been for 12 months.
Naturally, the repayment rate will also reduce, from 4.25% to 4% on any early or overpayments you may have made to HMRC.
The other rates which are affected are as follows:
- Interest charged on underpayments of quarterly instalments of corporation tax: drops from 6.25% to 6%
- Interest paid on overpayments or early repayments of the same to fall from 5% to 4.75%
If you have any questions, please don’t hesitate to contact any of the team who will be happy to guide you.
For more detail and information on historic HMRC interest rate charges, please see HMRC’s paper on this subject:
