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HMRC internal manual

VAT Statutory Interest Manual

Processes and procedures: affect on officers assessments liable to default interest

If a taxpayer receives a payment of statutory interest (SI) the relevant over-declaration should be inhibited for default interest (section 74 VATA) purposes on the appropriate input document.

This is so that if an officers assessment is raised separately for the same accounting period the taxpayer will not benefit twice, through payment of SI and a reduction in any associated default interest.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

VATA s 78
VATA s 74