VDIM10030 - Notices: Notice of further interest - use of VAT659

This guidance deals with interest matters in respect of prescribed accounting periods starting on or before 31 December 2022. Interest matters with effect from 01 January 2023 are dealt with under Finance Act 2009.

Please see Compliance Handbook page CH140000 onwards to find the new interest rules guidance.

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.

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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.