HMRC to Reduce Late Payment Interest Rates

HMRC to Reduce Late Payment Interest Rates

Due to the recent drop in the Bank of England’s base rate from 5.0% to 4.75% on 7 November 2024, HMRC will adjust interest rates on late payments and overpayments.

From 18 November 2024:

• Late corporation tax paid quarterly: 5.75%

• Interest on overpaid corporation: 4.5%

From 26 November 2024, the rates for other taxes will be:

• Late payment interest: 6.75%

• Interest on overpaid tax: 3.75%

To avoid penalty interest, ensure timely payment of tax bills. Please note that interest on overpaid taxes is exempt from income tax.