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HMRC internal manual

VAT Default Interest Manual

From
HM Revenue & Customs
Updated
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Calculation of interest: De minimis limit

If the total interest and further interest calculated for an assessment exceeds £5 further interest will be charged.

If it does not, further interest will not be charged. If the tax continues to remain unpaid the calculation may increase over a period of time and exceed the de minimis limit.

The liability is therefore not removed but merely postponed.