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HMRC internal manual

VAT Default Interest Manual

Interest adjustment: After input of Form VAT663

Once the VAT663 has been forwarded to Accounting & Adjustments you should monitor the resulting computer adjustments. 

You will receive confirmation of the adjustment on the print D1686 ‘Change of Interest Notification’. This print is issued on a daily basis.

On receipt of the D1686 you should check you have achieved the desired result by examining the interest calculation record for the relevant assessment.

No output document is produced following the VAT663 action so any adjustment must be notified to the taxpayer manually.