This is direct tax guidance; for indirect tax guidance, refer to VAT Guidance.

S78 Value Added Tax Act 1994

VAT legislation provides for the payment of interest on a refund of VAT in cases of official error. Such interest is income in the hands of the recipient. HMRC's view is that the interest is therefore chargeable to tax in the period in which it is allocated to the profit and loss account.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.