VDIM5100 - Calculation of interest: Interest Calculation Record

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.

Once it has been calculated the interest amount is stored in the Interest Calculation Record (ICR) Table. This table records the events which make up the interest liability on any officer’s assessment. Each event is given a code, see VDIM5110.

The ICR is updated whenever

• the liability changes, for example a VAT643 is input
• payment is appropriated to the outstanding VAT
• further interest is charged
• there is a change in the interest rate
• a leap year starts or ends
• the taxpayer deregisters
• the taxpayer becomes insolvent.