Value Added Tax Act 1994 section 77D

Joint and several liability under section 77B or 77BA: interest

Section 77D deals with how interest is handled when a person is held jointly and severally liable for another person's unpaid VAT under the joint and several liability provisions.

• When a person is made jointly and severally liable for another trader's VAT debt, they also become liable for any late payment interest that has accrued on that debt.
• The jointly liable person's interest obligation runs from the original due date of the VAT up to the date the liability notice is issued to them.
• Once the liability notice is issued, the jointly liable person is treated as if the unpaid VAT were their own debt, meaning further late payment interest continues to accrue on it from that point.
• This section was amended in 2022 to align with the updated late payment interest regime introduced under the Finance Act 2009.