CH140190 - Interest: Interest start and end dates

You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See CH140160 for full details.

We calculate interest from the interest start date to the interest end date. There is more detailed guidance at

This page defines the various interest start and end dates that we refer to in this guidance.

CH140220 explains how to calculate the number of days from the start date to the end date.

Note that there are definitions of other terms in the glossary at CH149950.

Late payment interest start date
Late payment interest end date
Repayment interest start date
Repayment interest end date

Late payment interest start date

The late payment interest start date in respect of any amount is the date on which that amount becomes due and payable, even if the start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

There are also special provisions that apply in particular circumstances that change the late payment interest start date, see CH143000+.

Example

Derek is required to submit and pay his VAT returns quarterly. For the VAT accounting period ending March 2023 (which covers 1st January 2023 to 31st March 2023) the deadline to submit, and pay is 7 May 2023. HMRC receives the return on 7 May 2023, and this shows a VAT liability of £10,000, however Derek doesn’t pay the amount due until 14 May 2023.

As Derek’s payment was not received until 14 May 2023, late payment interest is charged from the late payment interest start date of 7 May 2023 until the late payment end date of 14 May.

Derek will be charged late payment interest on £10,000 for 7 days (8 May 2023 to 14 May 2023 inclusive).

See table in CH140220 for establishing the number of days of interest.

Note: a customer’s VAT payment deadline depends on when their VAT accounting period ends and their method of payment. For further help on VAT payment due dates, you may find it helpful to refer to the VAT payment deadline calculator - GOV.UK ().

Late payment interest end date

Late payment interest runs to the late payment interest end date.

For late payment interest, the end date is the date on which payment is made or set-off takes place, see CH140200.

Repayment interest start date

Repayment interest runs from the repayment interest start date until the date on which HMRC makes payment.

The ‘repayment interest start date’ depends on whether the amount was originally paid to HMRC or whether it arose because of a return or claim.

  1. Rule 1: Payment of amounts which were paid to HMRC

For amounts paid to HMRC, the repayment interest start date is the later of:

  • the date when the amount was paid to HMRC, and
  • the date the amount was due and payable to HMRC.
  1. Rule 2: Payment of amounts on a return or claim

For situations where the amount being claimed had not previously been paid to HMRC but becomes payable because of a return or claim, the repayment interest start date is the later of:

  • the date when the return was required to be filed, or the claim to be made, and
  • the date when the return was actually filed, or the claim actually made.

The only tax regime for which rule 2 currently applies is VAT from [01/01/2023 for Prescribed Accounting Periods starting on or after 01/01/2023].

The repayment interest start date depends on whether the VAT return position for a prescribed accounting period was for a net ‘payment’ or a net ‘repayment’.

Where the position for the prescribed accounting period was for a net payment and this changes to a net repayment (VAT credit) as a result of a correction or claim, then both rules 1 and 2 will apply. Repayment interest will be payable on both:

(a) the amount which was paid to HMRC in respect of the prescribed accounting period

and

(b) the net VAT credit that had not been claimed for that period.

This scenario can arise where:

  • a claim is made under Section 80 VATA 1994 where a customer has over accounted for output tax on their payment VAT return,
  • a claim is made under Regulation 29 of VAT Regulations 1995 where a customer has deducted less input tax than they were entitled to on their payment VAT return.

Examples for repayment interest are included at CH146060

Repayment interest is paid even when the start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

There are also special provisions that apply in particular circumstances that change the repayment interest start date and provide specific rules for VAT, see CH146200

Repayment interest end date

Repayment interest runs to the end date.

For repayment interest the end date is the date when the amount is

  • repaid to the person, or
  • paid to another person, or
  • set off against that, or another, person’s liability.

FA09/S101
FA09/S102