[F1Common period rules for value added taxU.K.
Textual Amendments
F1Sch. 54A Pt. 2 inserted (1.1.2023) by Finance Act 2021 (c. 26), s. 120(2), Sch. 29 para. 4(3); S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)
8(1)This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)).U.K.
(2)A common period in relation to a person is any period during which—
(a)an amount of value added tax that carries late payment interest is due and payable by the person (“the overdue payment”), and
(b)an amount of VAT credit that carries repayment interest is payable to the person (“the VAT credit”).
(3)During the common period—
(a)the overdue payment is to be treated as carrying late payment interest only on the amount (if any) by which the overdue payment exceeds the VAT credit, and
(b)the VAT credit is to be treated as carrying repayment interest only on the amount (if any) by which the VAT credit exceeds the overdue payment.]