HMRC has decreased interest rates for late payments for most taxes, after the Bank of England’s decision to reduce the base rate to 4.5%.
From 17 February 2025, the rate for late paid corporation tax quarterly instalment payments is 5.5%, while the rate paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments falls to 4.25%.
The new rate for other late paid taxes is 7% and repayment interest rate lowers to 3.5%. These take effect from 25 February 2025.
