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HMRC internal manual

VAT Default Interest Manual

From
HM Revenue & Customs
Updated
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Notices: Notice of further interest - use of VAT659

This form is issued to taxpayers direct from the Shoebury computer centre in cases where they have paid the full amount of interest bearing tax on an assessment but there is still a liability to further interest. This usually happens in the following circumstances

  • the interest bearing tax has been paid in full but not within 30 days of the issue of the original tax assessment.
  • the taxpayer has paid an amount after the issue of a VAT658 and an extra liability exists from the date of the VAT658 to the outstanding tax payment date.

De minimis

See VDIM5090 for the de minimis rule.

Contents and Layout

The VAT659 has two sections

  • VAT659 Notice of Assessment of Further Interest
  • VAT659A Remittance Slip.

The content is very similar to the VAT658 but it excludes the outstanding tax balance and current interest rate.

The box titled “Further interest is payable for period…….” shows the date interest was last charged and notified to the taxpayer on this assessment, to the date the interest liability stopped. This may be the date payment was received or a repayment return / assessment was offset against the outstanding tax.