VDIM5090 | Calculation of interest: De minimis limit

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.

If the total interest and further interest calculated for an assessment exceeds £5 further interest will be charged.

If it does not, further interest will not be charged. If the tax continues to remain unpaid the calculation may increase over a period of time and exceed the de minimis limit.

The liability is therefore not removed but merely postponed.