HMRC has announced the dates its new interest rates will take effect.

Depending on the payment plan used by taxpayers, the dates for the diary were August 18 and 27.

The change follows the Bank of England's recent base rate cut, the Mirror reports.

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The Bank of England Monetary Policy Committee declared a drop in the base rate on August 7.

It will drop from 4.25 per cent to four per cent, marking the lowest it has been since March 2023.

The base rate sets the tone for interest rates for building societies and banks.

It impacts everyone from savers to homeowners, credit card holders and HMRC.

Changes to HMRC's interest rates will affect those making late tax payments or receiving repayments

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