VDIM1010 - Introduction: Who is this guidance for

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 manual is the main reference material for people in HMRC who may have to deal with VAT Default Interest.

All HMRC procedures and work systems that administer VAT default interest are outlined in this guidance which gives all HMRC managers and staff guidelines relating to

• departmental rules, and
• general advice on interpreting them.

The guidance is intended for use by HMRC staff and should not be relied upon by businesses in calculating their taxes and duties.