VDIM9100 - Circumstances affecting default interest: Long first period returns

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 manual central assessment (VAT152A) is issued because a long first period return is not received on time, any interest due is calculated as usual from the reckonable date.

The reckonable date, see VDIM2030, is the due date of the return. The interest is therefore only calculated from the due date despite the fact the assessment may include arrears for example that are two years old.