HMRC has cut the interest rates and allowances for late and early payments following the recent cut in the Bank of England base rate to 0.25% due to come later this month
The revised rates will apply from 23 August 2016, the first change to be enforced since September 2009.
The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:
late payment interest rate - 2.75% from 23 August 2016, cut from 3%; and
repayment interest rate - 0.5% from 29 September 2009.
Likewise the income tax, national insurance contributions, capital gain tax, stamp duty land tax, stamp duty and stamp duty reserve tax rates are lowered to 2.75% from 3% while repayment rates remain at 0.5%.
The corporation tax pay and file rate and corporation tax self assessment, from normal due date, is cut by 0.25% to 2.75%.
The interest charged on underpaid quarterly instalment payments goes down to 1.25%.
The changes to judgment debt interest rates will not take effect in Scotland and Northern Ireland and apply to National Insurance debts until Royal Assent of Finance Act 2016.
Scottish Revenue announced cuts in its interest rates with effect 10 August.
The HMRC guidance on Interest rates for late and early payments is here