HMRC reduced late payment and repayment interest rates from 25 February following the cut in the base rate.
The Bank of England had lowered the base rate to 4.5% on 6 February, triggering a 0.25% reduction in HMRC interest rates, which are linked to the base rate.
From 25 February, the late payment interest rate was reduced to 7.0% from 7.25%, while the repayment interest rate was cut to 3.5% from 3.75%.
HMRC’s late payment interest is set at the base rate plus 2.5%, while repayment interest is set at the base rate minus 1%, with a minimum floor of 0.5%.
Corporation tax self-assessment interest rates, which apply to underpaid quarterly instalment payments, dropped to 5.5% from 5.75% starting 17 February, a week earlier than the main late payment rate change.
Info obtained Here
