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HMRC internal manual

VAT Default Interest Manual

How to inhibit, amend or withdraw interest, Amending interest following misappropriation of a remittance

It is likely that misappropriation will only come to light when a taxpayer receives an assessment of further interest but has already sent payment in respect of the interest bearing tax.

Where misappropriation has led to an excessive interest charge in this way, a completed VAT 915 must be sent to Accounting and Adjustments (This content has been withheld because of exemptions in the Freedom of Information Act 2000) with full details of the amounts to be re-appropriated.

They will carry out the instructions and the interest calculation record will be updated the next time the mainframe computer further interest suite looks at the assessment.

Corrective action should be taken before interest is amended for any other reason, so that any interest distortion will not be made worse.