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HMRC internal manual

VAT Default Interest Manual

From
HM Revenue & Customs
Updated
, see all updates

Interest adjustments: Functions of Form VAT663

Form VAT663 has two main functions:

  • To adjust the amount of Interest Bearing Tax (IBT), that is the amount of tax that interest is charged on. The IBT can be reduced or increased and this will have a direct impact on the amount of interest that will be charged or reduced. It is possible for the IBT to be increased or decreased between two given dates or left open ended, and
  • To input a direct adjustment to the amount of interest that will be charged or reduced.