💨 Abstract

From May 28, 2025, the UK's HMRC reduced the late payment interest rate from 8.5% to 8.25%, following a drop in the Bank of England base rate. This change means lower interest charges for households with overdue taxes. The reduction in late payment interest rate impacts mortgage payments and savings returns. HMRC also adjusted the repayment interest rate to 3.25%.

Courtesy: Daniel Fessahaye