VDIM7050 | When to inhibit, amend or withdraw interest: Misappropriation of remittances

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.

Where a remittance sent in payment of an assessment has been allocated incorrectly, for example to an earlier non-interest bearing debt, it can lead to continued assessments to further interest when they are not due.

If this is the case you will need to correct the situation by arranging for the money to be re-appropriated. Appropriation policy is set out DMBM210100.