HMRC has announced that interest rates for late payments will increase by 1.5% for all taxes starting 6 April 2025. This change, which was first announced at Autumn Budget 2024, will raise the late payment interest from the current base rate plus 2.5% to base rate plus 4.00%. This adjustment applies to most taxes. Late payment interest is automatically applied by HMRC and accrues on any unpaid tax liability from the due date until the amount is fully paid.

HMRC interest rates are determined by legislation and are tied to the Bank of England’s base rate. While the rate for late payments is set to increase, the rate for repayment interest will remain unchanged. Currently, repayment interest is set at base rate minus 1%, with a minimum floor of 0.5%.

The purpose of the late payment interest rate increase is to encourage timely tax payments, ensuring fairness for those who pay on time. HMRC also says that this increase aligns its practices with those of other tax authorities globally, as well as with commercial norms for loan and overdraft interest rates. The repayment interest rate compensates taxpayers fairly for any overpayments.

If you're facing financial difficulties and owe tax, HMRC’s Time to Pay service may offer breathing space. From self-assessment to PAYE and VAT, eligible individuals and businesses can spread payments and avoid immediate enforcement.

Businesses and self-employed individuals experiencing financial challenges and with outstanding tax liabilities may qualify for support through HMRC's Time to Pay service. This service helps with unpaid taxes, duties, penalties, or surcharges that cannot currently be paid.

Self-assessment taxpayers with liabilities of up to £30,000 can use the online Time to Pay service to arrange instalment payments for their tax bills. This service is available without needing to speak directly to an HMRC advisor and can be accessed within 60 days of the payment deadline.

To be eligible for the online service, taxpayers must meet the following conditions:

• No outstanding tax returns
• No other unpaid tax debts
• No existing HMRC payment plans

The self-serve option is also available for qualifying PAYE and VAT debts up to £100,000. For taxpayers who don’t qualify for the online option, alternative payment plans can be arranged, typically tailored to the individual’s or business's specific situation and liabilities. These plans allow for debt repayment in instalments over an agreed period.

HMRC generally provides extended payment terms if they believe the taxpayer cannot pay in full immediately but will be able to do so in the future. If HMRC determines that additional time won’t resolve the issue, they may require immediate payment and begin enforcement actions if the debt remains unpaid.

Student Loans help cover the cost of university or college in the UK. Whether you're full-time, part-time, or heading into postgrad study, here’s what you need to know about applying for 2025–26 funding—even if your plans aren’t final yet.

Student Loans are an essential part of the government’s financial support system for individuals pursuing higher education in the UK. These loans are designed to assist students in covering their living and educational costs during their time at university or college.

If you usually reside in England, you can apply for student finance for the academic year 2025-26. You can submit your application for student finance even if you are unsure about your living or studying arrangements. Applications for postgraduate students will be open at the end of April, while part-time applications will be available starting in May.

You can apply for several types of funding, including Tuition Fee Loans and Maintenance Loans. Applications can be made up to nine months after the start of your course’s academic year. If you are eligible for tuition fee-only funding, you will need to submit your application by post. However, for most applicants, the best way to apply is online through the Student Finance England website.

For those requiring financial assistance for further education courses at a college or training provider, it may be possible to apply for an Advanced Learner Loan instead.

The application procedures differ for students who are from Scotland, Wales, and Northern Ireland, and they should be aware of the specific requirements they need to meet.

If your employee is called for jury service, you must allow them time off—but you're not required to pay them. Here’s a clear look at your responsibilities, options, and how to handle disruptions and pay during their absence.

If your staff members are called to serve on a jury, you are required to grant them the necessary time off for jury service. If their absence would significantly disrupt your business, you may ask them to request a postponement of their jury service. The employee must agree to this request and provide written justification for the delay. A postponement can only be requested once within a 12-month period, and the employee must specify on the jury summons when they will be available.

While employers are obligated to allow time off for jury service, there is no legal requirement to pay employees during their absence. However, employers may choose to continue paying employees as usual. If this occurs, the employer cannot reclaim the wages paid to the employee or the business losses incurred during the jury service.

If the employer does not provide pay, the employee can claim a loss of earnings allowance from the court. To do so, the employer must issue a certificate of loss of earnings, which is provided along with the jury service letter. Employers may also opt to supplement the loss of earnings allowance by reducing the court allowance from the employee’s regular take-home pay.

The Bank of England’s Monetary Policy Committee (MPC) met on 5 February and in a 7-2 vote decided to reduce interest rates by 25 basis points to 4.5%. The two remaining members voted to reduce the rate further to 4.25%. This was the third interest rate cut since August 2024.

This means that the late payment interest rate applied to the main taxes and duties that HMRC charges interest will be reduced to from 7.25% to 7%.

These changes will come into effect on:

• 17 February 2025 for quarterly instalment payments
• 25 February 2025 for non-quarterly instalments payments

The repayment interest rates applied to the main taxes and duties that HMRC pays interest on will also decrease by 0.25% to 3.50% from 25 February 2025. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.