This paragraph covers the amounts which carry interest under the default interest regime applying to VAT periods starting before 1 January 2023.
From 1 January 2023 the harmonised interest regime for late payment of tax in FA 2009 applies in relation to VAT (including any VAT penalties assessed)1. This harmonised interest regime is covered in V5.302D.
Introduction to amounts carrying default interest
Tax, an amount assessed as being tax or an amount taken as representing tax carries interest if it arises in the circumstances set out below.
Any interest assessed under this provision is not deductible in computing any income, profits of losses for any tax purposes2.
Assessment carrying interest
Assessment made under VATA 1994, s 73(1)3 (failure to make returns, incorrect returns, etc)
An assessment in respect of a failure to submit a return or an inaccuracy in a return carries interest if one or more of the following conditions is fulfilled4:
- Ìý
(1)ÌýÌýÌýÌý a return
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