HMRC cuts late payment interest

Following the recently announced base rate cut from The Bank of England, HM Revenue & Customs (HMRC) have announced a reduction in the interest rates for late payments and repayments, effective from 25th February 2025. Here are the key changes:

Late payment interest has been cut from 7.25% to 7.0%

Repayment interest rate has been cut from 3.75% to 3.5%

Full details of the interest rates can be found in HMRC's guidance.