Rate Update – From 27th August 2025
Following the Bank of England's recent decrease of its base rate to 4.00%, HMRC announced a change to its interest rate for late payments to the main taxes and duties that HMRC charges and pays interest on to:
- Late payment interest rate has increased to 8.00% from 27th August 2025*
- Repayment interest has decreased to 3.00% from 27th August 2025
- Learn more
*Late payment interest has increased as the rate charged by HMRC has increased from 2.5% to 4% above the Bank of England Base Rate, effective 6th April 2025. Repayment interest remains at 1% below the bank of England Base Rate.
Rate Changes in 2025:
| From |
Late payment % |
Repayment % |
| 27 August 2025 |
8% |
3% |
| 28 May 2025 |
8.25% |
3.25% |
| 6 April 2025 |
8.5% |
3.5% |
| 25 February 2025 |
7% |
3.5% |
For previous rates, please see here.
Tax returns deadlines
Self-Assessment
- 31st October - paper tax return submission
- 31st January - Online submission
- 31st January - Tax payment deadline
Please note that businesses with a Self-Assessment tax bill of more than £1,000 are required to make a 'Payment on Account' towards their following year's tax bill.
Learn more about 'Payment on Account'. (payment on account article will be updated)
Payment arrangements
If you cannot pay your Self-Assessment bill on time and owe less than £30,000, you can contact HMRC to set up a Time to Pay payment plan.
VAT - Submitted quarterly
One calendar month and 7 days after the end of an accounting period.
Company Accounts
- Submit your first accounts to Companies House - 21 months after registering your company on Companies House.
- Submit your annual accounts to Companies House - 9 months after your company's financial year end.
Corporation Tax
- Submit and pay - 9 months and one day after the end of your accounting period.
- File your company's tax return - 12 months after your company's corporation Tax accounting period, ends.
