On 1 August 2024, the Bank of England reduced the rate from 5.25% to 5%. HMRC interest rates are linked to the Bank of England base rate, and consequently, it has published updated its interest rate tables which recognises the .25% decrease. This interest applies to late VAT payments and repayments.
These changes will come into effect on:
- 12 August 2024 for quarterly instalment payments
- 20 August 2024 for non-quarterly instalments payments.