On 4 August 2016, the Bank of England reduced the base rate to 0.25%. As a result, on 5 August 2016, HMRC announced that interest rates for late payment will be reduced with effect on:

  • 15 August 2016 for quarterly installment payments; and
  • 23 August 2016 for non-quarterly installment payments.

HMRC is expected to revise information on the interest rates for late payments shortly. Repayment interest rates remain unchanged.