For the first time in over four years, the Bank of England has confirmed a reduction in its interest base rate, reducing from 5.25% to 5.00% from 1 August 2024. Following this, HMRC interest rates will reduce similarly, and for most taxes, with effect from 20 August 2024:
- the late payment interest rate reduces from 7.75% to 7.50%.
- the repayment interest rate reduces from 4.25% to 4.00%.
For corporation tax quarterly instalment payments the reduction takes effect slightly sooner, from 12 August 2024:
- on underpayments, reducing from 6.25% to 6.00%
- on overpayments, reducing from 5.00% to 4.75%
