Updates to the HMRC interest rates for late and early payments were published on 8 August 2025, reflecting the Bank of England's decision to cut the base rate from 4.25% to 4.00% on 7 August. From 6 April 2025, late payment interest is set at the base rate plus 4.0% (previously plus 2.5%), and repayment interest is set at the base rate minus 1%, with a lower limit (minimum rate) of 0.5%. With the latest cut in the base rate to 4.00%, the late payment and repayment interest rates are reduced …