20 June 2025
The Bank of England’s Monetary Policy Committee (MPC) voted on the Bank Base Rate today.
Six members of the MPC voted to maintain the interest rate and three members voted to maintain the interest rate at 4.25%. There were no votes to increase the rate this time.
For payroll professionals, it is good to be aware of the impact this announcement has on HM Revenue and Customs’ (HMRC’s) late payment interest charges.
HMRC interest rates are set in legislation and are linked to the Bank of England base rate, these rates are:
- late payment interest – set at base rate plus 2.5%
- repayment interest – set at base rate minus 1%, with a lower limit of 0.5%.
The next Bank of England announcement is set for 7 August 2025.
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