SCHEDULES
F1Schedule 54AFurther provision as to late payment interest and repayment interest
C1F2PART 2Value added tax
Sch. 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)
Sch. 54A Pt. 2 modified (1.3.2024) by 1994 c. 23, Sch. 9ZF para. 11D (as inserted by The Value Added Tax (Distance Selling) (Amendments) Regulations 2024 (S.I. 2024/128), regs. 1(1), 6(4) (with reg. 1(2)))
Common period rules for value added tax
8
1
This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)).
2
A common period in relation to a person is any period during which—
F4a
an amount (“the overdue payment”) that is, or relates to, value added tax—
i
is due and payable by the person, and
ii
carries late payment interest, and
b
an amount (“the relevant amount”) that is, or relates to, value added tax—
i
is payable to the person, and
ii
carries repayment interest.
3
F5In respect of 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 F6relevant amount, and
F34
An amount of repayment interest that—
a
has been paid to a person, but
b
as a result of sub-paragraph (3)(b), ought not to have been paid,
may be recovered from the person as if it were late payment interest.
Sch. 54A inserted (1.1.2023 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 25(2), Sch. 9 para. 12 (as amended by: 2014 c. 26, Sch. 4 paras. 14, 16, 17; S.I. 2014/2228, art. 2; 2016 c. 24, Sch. 8 para. 12, 17(1)(a); and 2017 c. 32, Sch. 6 paras. 15, 20, 21(1)(b)); S.I. 2022/1277, reg. 2(2)(d) (with reg. 3)