UK HMRC has updated its guidance page on interest rates for late and early payments to account for the increase in late payment interest rate charged on unpaid tax liabilities by 1.5 percentage points with effect from 6 April 2025. Prior to 6 April 2025, late payment interest was set at the base rate plus 2.5%. From 6 April 2025, late payment interest is set at the base rate plus 4.0%. Repayment interest is set at the base rate minus 1%, with a lower limit of 0.5%, which has not changed.
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