VDIM8010 - How to inhibit, amend or withdraw interest: Introduction

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.

If amounts of tax on an assessment are withdrawn or amended by inputting a VAT644, see VAEC9200, or VAT643, see VAEC9000, any interest which has been calculated previously will automatically be withdrawn or amended.

Normally the interest inhibit should only be set on forms VAT641 and VAT642 if you are satisfied that charging interest is not appropriate in the circumstances of the individual case. Inhibits must be countersigned by a Senior Officer.

If it is necessary to inhibit, amend or withdraw interest for an assessment without affecting amounts of tax, the method of doing it will vary depending on the type of reduction

For

  • Amending interest following misappropriation of a remittance, see VDIM8020
  • Inhibiting or withdrawing interest on an assessment, see VDIM8030
  • Setting an inhibit after an assessment is processed, see VDIM8040
  • Amending interest after an assessment has been processed, see VDIM8050.