The Taxes and Duties etc (Interest Rate) (Amendment) Regulations SI 2025/386 amend the formulas for calculating the various rates of late-payment interest charged on amounts due to HMRC – the effect being to increase those rates by 1.5 percentage points with effect from 6 April 2025 (as had been announced at Autumn Budget 2024). The new rates are as follows:
late-payment rate for most taxes: Bank of England base rate plus 4 points (rate from 6 April 2025: 8.5%);
interest on underpaid quarterly instalment payments of corporation tax: BoE base rate plus 2.5 points (rate from 6 April 2025: 7%); and
interest on late payments of customs import duty: BoE base rate plus 3.5 points (rate from 6 April 2025: 8%).
Rates of repayment interest (paid out by HMRC) remain unchanged at base rate minus 1 percentage point for most taxes (base rate minus 0.25 points...
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The Taxes and Duties etc (Interest Rate) (Amendment) Regulations SI 2025/386 amend the formulas for calculating the various rates of late-payment interest charged on amounts due to HMRC – the effect being to increase those rates by 1.5 percentage points with effect from 6 April 2025 (as had been announced at Autumn Budget 2024). The new rates are as follows:
late-payment rate for most taxes: Bank of England base rate plus 4 points (rate from 6 April 2025: 8.5%);
interest on underpaid quarterly instalment payments of corporation tax: BoE base rate plus 2.5 points (rate from 6 April 2025: 7%); and
interest on late payments of customs import duty: BoE base rate plus 3.5 points (rate from 6 April 2025: 8%).
Rates of repayment interest (paid out by HMRC) remain unchanged at base rate minus 1 percentage point for most taxes (base rate minus 0.25 points...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
