UK HMRC has updated its guidance on interest rates for late and early payments, reflecting the Bank of England's decision to cut the base rate from 4.00% to 3.75% on 18 December 2025. Late payment interest is currently set at the base rate plus 4.0%, and repayment interest is set at the base rate minus 1%, with a lower limit (minimum rate) of 0.5%. With the latest cut in the base rate to 3.75%, the late payment and repayment interest rates are reduced to 7.75% and 2.75%, respectively, from 9…