This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Default Interest Manual

The law and legal powers: The law supporting default interest

The relevant law is contained in Section 74 of the VAT Act 1994.Discretion to assess interest can be found in Section 76 of the Act, and time limits for assessing can be found in Section 77 of the Act.

The legislation covering the applicable rate of interest payable to HMRC is contained in Regulation 4 (1)(c) of the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998. See VDIM5010 for guidance on rates of interest.