VDIM5020 | Calculation of interest: The interest span

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.

This is the period of time over which an amount of interest is calculated. Section 74 of the VAT Act 1994 provides for interest to be due from “the reckonable date until payment” (although this is subject to time limits).