VDIM2050 | The law and legal powers: Discretion to assess interest or not

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.

VAT Act 1994 Section 76(1) states that where any person is liable

‘(c) for interest under section 74

The Commissioners may, subject to subsection (2) below, assess the amount due by way of penalty interest or surcharge, as the case may be, and notify it to him accordingly.’

Please refer to VDIM3000 commercial restitution.