HMRC interest rates for late payments will be revised following the Bank of England interest rate increase to 4.00%.
The Bank of England Monetary Policy Committee announced on 5 November 2026 to increase the Bank of England base rate to 4.00% from 3.75%.
As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase.
Late payment interest is currently set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit β or βminimum floorβ β of 0.5%.
The differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits.