Guidance

How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)

Find out how to amend your VAT records if you've made errors, correct errors on your VAT Return and claim a refund if you’ve overpaid VAT.

Detail

This notice cancels and replaces Notice 700/45 (July 2015).

1. Overview

1.1 What this notice is about

This notice explains how to:

  • amend your VAT records if you discover they contain errors
  • correct errors you discover on VAT Returns you’ve already sent to us
  • claim a refund if you’ve overpaid VAT, or not claimed enough credit on a return
  • claim a refund of VAT where you disagree with our decision on the VAT treatment of a supply
  • claim a refund of VAT where our practices in relation to VAT are being challenged in the court

If you find an error in accounting for VAT that is not covered by this notice, you should contact the VAT helpline.

1.2 How we can help you to get your VAT Returns right the first time

VAT errors can prove costly to you and to us. Failure to correct errors can result in a penalty and interest. For more on this see section 4.

Reading this notice can help you avoid errors. This notice explains how you can correct them if they do occur.

2. Errors found in records

2.1 If you find errors in your VAT records

Where you find that your VAT records contain errors, you will need to correct them. Paragraph 2.2 explains how you can do that.

This guidance only applies to declarations of UK VAT and does not apply to VAT MOSS Returns, as these contain declarations of VAT due in other EU member states. To correct errors in declarations of VAT due in other member states, you will need to follow the rules of the relevant EU member state. If you need assistance with this then you should contact the member state using the details in this list of contact points.

If that advice does not fit your particular circumstances, you may need further help from our VAT helpline or you may wish to consult your own tax adviser.

Where an error has led to a misdeclaration on a VAT Return you’ve already sent to us, you can correct the error by following the advice in section 4.

If you deliberately fail to correct an underdeclaration of VAT, you may be liable to a penalty or even criminal prosecution.

2.2 If you record or calculate your VAT incorrectly

If you discover you’ve recorded an entry in your business records incorrectly and then
you have not yet completed your VAT account or return for the period in which you made the error you can correct the error by amending your records. Simply keep a clear note to show the reason for the error, and include the correct VAT figure in your VAT account for the same period. The correct VAT figure will then work its way through to your VAT Return, as normal.
you’ve already sent us your return you will need to correct the error by following the procedures in section 4.

3. Errors on invoices

3.1 If the wrong amount of VAT was shown on an invoice

This section does not apply where there’s been a change in the consideration for the supply, that is, if the price has changed and consequently the amount of VAT.

If the wrong amount of VAT was shown on an invoice, this section explains how you can correct it.

For example, where you have:

  • made an arithmetical mistake in calculating the tax value or the VAT element of the supply
  • charged VAT on a supply, where no VAT was due

3.2 Amount of VAT shown on an invoice you issued is wrong

If the amount shown on the invoice you issued was then you must
too high account for the higher amount in your records
too low account for the amount you should have charged

3.3 Amount of VAT shown on an invoice you received is wrong

If the amount of VAT shown on an invoice you received is then you must
too high go back to your supplier for a replacement invoice reducing the amount of VAT charged
too low go back to your supplier for a replacement invoice increasing the amount of VAT charged

4. Correcting VAT errors on a return already submitted

4.1 Errors discovered for return periods beginning on or after 1 April 2008 with a due date on or after 1 April 2009

The Penalties for Errors regime:

  • errors or inaccuracies relating to return periods beginning on or after 1 April 2008 where the due date for the return is on or after 1 April 2009 will be liable to a penalty if they are careless or deliberate
  • if a person discovers a non-careless error, HMRC expects that they will take steps to correct it – if the person does not take steps to correct it, the inaccuracy will be treated as careless and a penalty will be due
  • careless or deliberate inaccuracies relating to returns commencing on or after 1 April 2008 with a due date on or after 1 April 2009, that are being corrected using method 1 or 2 (see paragraph 4.2), will be subject to the new penalty regime
  • where careless or deliberate behaviour results in an incorrect error correction notification being made under method 2 (see paragraph 4.2) you will be subject to a penalty if it is correcting errors made on returns commencing on or after 1 April 2008 with a due date on or after 1 April 2009 – this applies regardless of whether the original errors were made despite taking reasonable care or not
  • in order for HMRC to consider any reduction to a penalty, you should tell us if you have made a careless error or deliberate inaccuracy regardless of its size or value – although we also require separate disclosure for the purpose of reducing any penalty, careless errors may be adjusted on your next VAT Return subject to the limits described in this section
  • correction of deliberate inaccuracies must, however, always be notified to HMRC using form VAT652, please see below for more information – in such circumstances you should complete the VAT652 and provide a description of the inaccuracy – tell us the full amount of the inaccuracy and explain how and why the inaccuracy arose (continue on a separate sheet if necessary)
  • if you have adjusted a careless error or inaccuracy on your return that is within the limits described below you may still write to HMRC asking us to consider any reduction to a penalty – your letter should contain the same information that is required on form VAT652, but it’s important that you also tell us that you have made the adjustment on your return – the majority of such errors will not be careless or deliberate, so no penalty will be due – people make mistakes and we do not expect perfection - when considering whether an error was careless, we are simply seeking to establish whether the person has taken the care and attention that could be expected from a reasonable person taking reasonable care in similar circumstances

4.2 Methods for correcting errors

There are 2 methods for correcting errors:

  • method 1 – for errors of a net value that do not exceed £10,000, or errors of a net value between £10,000 and £50,000 that do not exceed the limit described in paragraph 4.3
  • method 2 – for errors of a net value between £10,000 and £50,000 that exceed the limit in paragraph 4.3, or for net errors greater than £50,000.00, or if you so choose, for errors of any size

See paragraph 4.6 and paragraph 4.7 for further details on time limits and the transitional period extending the time limits from 3 to 4 years.

4.3 Method 1

For errors of a net value that do not exceed £10,000, or errors of a net value between £10,000 and £50,000 that are within the limits described below.

You can use this method to adjust your VAT account and include the value of that adjustment on your current VAT Return providing the:

  • net value of errors found on previous returns does not exceed £10,000
  • net value of errors found on previous returns is between £10,000 and £50,000 but does not exceed 1% of the box 6 (net outputs) VAT Return declaration due for the return period in which the errors are discovered

To work out the net value of VAT errors on previous returns, you should work out the:

  • total amount due to us, if any
  • total amount due to you, if any

If the difference between the 2 figures is greater than £10,000 and exceeds 1% of the box 6 (net outputs) VAT Return declaration due for the current return period during which the error is discovered, you must use method 2. You must always use method 2 if the net errors exceed £50,000 or if the errors made on previous returns were made deliberately.

Correcting errors using method 1 is not a disclosure for the purposes of the new penalties rules described at paragraph 4.1. If you consider that the error corrected using method 1 was a result of careless conduct you will not be able to gain the maximum reduction of the penalty unless you also notify us separately in writing, either by letter or by completion of the form VAT652, of both:

  • the error
  • your grounds for seeking a reduction to the penalty

This will be an unprompted or prompted disclosure depending on the circumstances.

4.4 Method 2

For errors of a net value between £10,000 and £50,000 which exceed the limits described below, or errors which exceed £50,000 or for errors of any size.

You must use this method if the:

  • net value of errors found on previous returns is between £10,000 and £50,000 and exceeds 1% of the box 6 (net outputs) VAT Return declaration due for the current return period during which the error was discovered
  • net value of errors found on previous returns is greater than £50,000
  • errors on previous returns were made deliberately

You may, if you wish, use this method for errors of any size which are below the limits at paragraph 4.3 instead of a method 1 error correction. If you use this method you must not make adjustment for the same errors on a later VAT Return.

When notifying HMRC of an error correction you should use form VAT652. This can be printed or you can request a form by contacting the VAT helpline.

If you’re unable to obtain a form you should, by reference to business records in your possession, write to the appropriate office at paragraph 4.11 and provide full details of the errors including:

  • how each error arose
  • the VAT accounting period in which it occurred
  • if it was an input tax or output error
  • the VAT underdeclared or overdeclared in each VAT period
  • how you calculated the VAT underdeclared or overdeclared
  • whether any of the errors resulted in you paying us an amount that was not due
  • the total amount to be adjusted

If the error was an amount underdeclared please include sufficient detail about the error on a separate sheet if necessary, to enable us to decide whether we should charge interest. You can find further information about interest in Default interest (VAT Notice 700/43).

4.5 Which method should I use

If the net value of errors do not exceed £10,000 or are between £10,000 and £50,000 but do not exceed 1% of the box 6 (net outputs) VAT Return declaration due for the current return period during which the errors are discovered, you can use method 1 or 2.

If they are between £10,000 and £50,000 and exceed 1% of the box 6 (net outputs) VAT Return declaration due for the current period during which the errors are discovered, or are greater than £50,000 you must use method 2.

If the errors on previous returns were made deliberately you must use method 2.

4.6 The time limit for correcting errors

You cannot adjust your VAT Return, or make an error correction notification, for any errors that arose in accounting periods that are outside the time limits at paragraph 4.6.1 and paragraph 4.7. You may however be able to correct tax point errors, where you have declared an amount of VAT on the return that immediately precedes or follows the return for which the amount was due, provided the later return remains in time under the 4-year capping provisions.

4.6.1 Transitional arrangements for the increase in time limits from 3 years to 4 years

The time limit for adjusting returns and correcting errors, including making claims, was increased with effect from 1 April 2009 from 3 years to 4 years. However, in order to make sure that accounting periods that were out-of-time on 31 March 2009 are not brought back in-time by the change, transitional arrangements have been put in place.

The transitional arrangements provide that no adjustment or error correction notification made between 1 April 2009 and 31 March 2010 can be made for any accounting period ending before 1 April 2006.

For instance, on 31 March 2009 the earliest accounting period for which a claim may be made for a refund of overdeclared output tax under section 80(1) Value Added Tax Act 1994 is the accounting period ending on 31 March 2006 (the old 3-year rule).

On 30 April 2009, the earliest accounting period for which a claim may be made under section 80(1) would be that ending on 30 April 2006.

Similarly, on 31 October 2009 the earliest accounting period that can be claimed for will also be that ending on 30 April 2006.

However, by 30 April 2010, the 4-year time limit will have come fully into effect so that a claim made on that date can still go back to a quarter ending on 30 April 2006.

For non-standard tax periods, return adjustments and error correction notifications made between 1 April 2009 and 1 April 2010 can be made for any accounting period ending on or after 1 April 2006. Adjustment thereafter will be subject to a 4-year limit.

4.7 The time limit for claiming input tax

The time limit for making claims was increased with effect from 1 April 2009 from 3 years to 4. However, in order to make sure that the accounting periods that were out-of-time on 31 March 2009 are not brought back in-time by the change, the following transitional arrangements apply.

The transitional arrangements provide that no claim made between 1 April 2009 and 31 March 2010 can be made for any accounting period for which the VAT Return was due before 1 April 2006.

Thus, on 31 March 2009, the earliest accounting period for which a claim may be made is that ending on 28 February 2006 (for which the due date of the return was 31 March 2006).

On 30 April 2009, the earliest accounting period for which a claim may be made under regulation 29 would be that ending on 31 March 2006 (the due date of the return for the period being 30 April 2006).

Similarly, on 31 October 2009, the earliest accounting period that can be claimed for will also be that ending on 31 March 2006. However, by 30 April 2010, the 4-year time limit will have come fully into effect so that a claim made on that date can go back to the quarter ending 31 March 2006.

4.8 If you do not correct VAT errors and HMRC finds them

4.8.1 For accounting periods prior to the introduction of the Penalties for Errors regime the following procedures apply

(See paragraph 4.1.)

If we find underdeclarations of VAT on your returns, we will assess for the tax due and may charge interest. You may also face a misdeclaration penalty. To avoid a penalty, you must disclose full details of the mistakes before we begin to make enquiries into your VAT affairs.

Enquiries normally begin when we make an appointment to inspect your records. But we will accept disclosures for penalty purposes after this point, unless we have reason to believe that:

  • you discovered the errors earlier and disclosed them only because you had been told that a visit was to be made
  • your disclosure during or after a visit was prompted by our enquiries into your affairs

You should make an error correction by following the procedures at paragraphs 4.3 to 4.5. If, however, you deliberately fail to correct an underdeclaration of VAT, you may be liable to a civil penalty for dishonest evasion or even criminal prosecution.

You can find further information in:

4.8.2 For accounting periods after the introduction of the Penalties for Errors regime the following procedures apply

(See paragraph 4.1.)

If we find underdeclarations of VAT on your VAT Returns, we will assess for the tax due and may charge interest. You may also be liable to a penalty.

You should make an error correction by following the procedures at paragraphs 4.3 to 4.6.

Please see paragraph 4.1 for more information in relation to error correction and the penalties for errors regime.

4.9 Correcting errors that have little effect on the net VAT that you declared

There may be occasions when large output and input tax errors have a nil or minimal effect on the net VAT due on returns. If the net value of errors you’ve found on previous VAT Returns is within the limit described in paragraph 4.2, you can choose either method 1 or 2 (described in paragraphs 4.3 and 4.4) to correct the errors. In order for us to consider any reduction to a penalty, you should tell us if you have made a careless error or deliberate inaccuracy in individual VAT Return declarations understating liability to pay VAT, or overstating entitlement to a VAT credit, regardless of its size or value.

4.10 Adjustments that are not errors

Provided they are accurate and made at the right time, adjustments that you are required to make as part of the normal operation of VAT accounting are not errors.

These accounting adjustments include:

  • retail scheme annual adjustments, or other adjustments required when a person stops using a particular retail scheme
  • adjustments under the Capital Goods Scheme
  • an approved estimation procedure
  • partial exemption adjustments
  • partial exemption clawback and payback adjustments
  • exports and intra-EC supplies of goods
  • issuing or receiving credit and debit notes
  • claims for bad debt relief
  • pre-registration and post deregistration expenses
  • adjustments for valid prompt payment discounts

If the original accounting adjustment was incorrect, or made at the wrong time, error corrections should be made in the normal way.

4.11 Where to send error correction notifications

Separate notification of error corrections should include the person’s VAT registration number and be sent to the VAT Error Correction Team (VATECT) office at:

HM Revenue and Customs
VAT Error Correction Team – SO864
Newcastle
NE98 1ZZ
United Kingdom

Telephone: 0300 200 3700

4.12 When to correct errors

As soon as you find an error, you should record it in your VAT records for correction or you could become liable to a penalty.

You may find it useful to keep a separate record in your current VAT account that you can update as errors are discovered. You should:

  • show the date the error was discovered
  • show the period in which the error occurred
  • identify any related documentation
  • identify whether the error was output or input tax related

At the end of your current VAT period, the record will help you decide whether method 1 or method 2 is the appropriate method to use when correcting errors.

You should normally wait until the end of the current accounting period before deciding whether method 1 or method 2 applies.

However, if an individual error is so large that the 1% box 6 test, or £50,000 limit, referred to in paragraph 4.4 will inevitably be breached, you should make an error correction report to HMRC using method 2 immediately.

5. How to claim a refund

5.1 Accounting for output tax that was not due

Where you have accounted for an amount of output tax that was not due, depending on the amount, you can either adjust your return for the period in which you discover the overdeclaration or you should claim a refund by making an error correction notification. Section 4 tells you which method you should use. You should correct all other known errors at the same time, provided they fall within the time limits explained at paragraph 4.6 and paragraph 4.7.

We will not pay a claim which would result in your unjust enrichment – for example, where you have:

  • passed the mistaken VAT charge on to your customer who bore the burden of the mistaken charge but are unable, or do not intend, to pass on to them any repayment resulting from the claim
  • not suffered any loss or damage by charging a higher price than you needed to

You can find further information about unjust enrichment and the arrangements for reimbursing customers in section 9.

If you’re not sure if you’re entitled to claim, you should ask your VAT business centre or the VAT helpline for advice.

6. Not claiming enough input tax on your previous returns

6.1 When are you entitled to claim input tax

The time limit described in paragraph 4.7 for deducting input tax starts to run from the due date for the return that you’re liable to make after you have both incurred the input tax and received the associated VAT invoice.

In practice, most traders will deduct any input tax they are entitled to on the next VAT Return after they have received the invoice from their supplier.

6.2 Having the evidence on time but still not claiming input tax in the right period

If you had the necessary evidence to enable you to claim the input tax in the VAT accounting period in which it became chargeable, but did not record it in your VAT account, this is an error. You cannot claim it on a later return. You may be required to make a return adjustment under paragraph 4.3 or an error correction notification under paragraph 4.4.

Should you wish to make a claim for input tax you must do so within the time limits described at paragraph 4.7.

7. Correction of errors under paragraph 4.4

7.1 What happens after you make an error correction notification

Each error notification is subject to checks to protect both the revenue and the interests of taxpayers generally.

We may sometimes need to contact you to clarify the details of your notification before we process it. In some cases it may also be necessary to visit you to verify it, usually at a mutually convenient date and time. Our officers will try to deal with any queries as swiftly as possible.

7.2 How we will notify you

Once we have processed your Error Correction, we will send you a Notice of Error Correction confirming the amount of your Error Correction and any interest calculated on it. You will also get a Statement of Account showing the current balance payable to us (including any interest) or repayable to you.

If your correction generated a repayment that is subject to the unjust enrichment provisions detailed in section 9 we will not send you these documents, but we will notify you separately by letter.

If you do not hear from us within 21 days, please contact your VAT Error Correction Team to make sure they’ve received your error correction notification.

7.3 Pay net amounts of VAT due to HMRC

If we’ve notified you in line with paragraph 7.2 and the Statement of Account shows a balance payable to us, you should send full payment as soon as possible to:

The Controller
HM Revenue and Customs
VAT Central Unit
Alexander House
21 Victoria Avenue
Southend-on-Sea
SS99 1AA

We may charge further interest if you do not pay the VAT in full within 30 days from the calculation date shown on the Notice of Error Correction.

You can pay electronically by:

  • Bacs Payment Schemes Limited (Bacs)
  • Clearing House Automated Payment System (CHAPS)
  • similar bank-operated systems

You can ask our helpline for details of these payment methods.

If you pay by Bacs or CHAPS your bank will need to quote your VAT registration number as your reference and make payment to:

  • sort code – 08 32 00
  • account no – 11963155

If you prefer, you can pay by cheque or postal order.

Please make cheques or postal orders payable to HMRC with a line through any spaces on the pay line. You should put your VAT registration number on the reverse of your cheque.

Please do not send post-dated cheques.

In your own interest, do not send notes or coins through the post.

7.4 HMRC repaying net amounts due to you

If the amount shown on your error correction notification leads to an amount repayable to you we will credit the amount due to your account and use it to reduce any outstanding balance to us. Additionally, where you are claiming output tax wrongly charged on supplies that have turned out to be exempt, any input tax that you deducted in relation to those supplies will be set against the amount claimed.

If, following this, money is still due to you, we will repay the remainder either by Bacs or Payable Order.

8. If you disagree with a decision or ruling

8.1 How to make a claim if you disagree with our decision or ruling

Where we have given you a decision or ruling concerning your VAT liabilities we will normally reject any claim from you which challenges our decision or ruling.

If your claim is formally rejected you will be invited to apply for a review of our decision. You have 30 days in which to accept this offer.

If you do not want a review, or if you do not agree with the result of the review, you can appeal to the First-tier Tribunal to decide the matter.

If you appeal you will preserve your entitlement to a refund, but only if you have made a valid claim, should our decision be overruled. If however you decide not to appeal to the tribunal then any future claims will be considered to be new claims, whether made on the same basis or not, and will be subject to the normal time limits as detailed in paragraph 4.6 and paragraph 4.7.

8.2 Further information on reviews and appeals

There is more information about what you can do if you disagree with our decision in factsheet HMRC1 and What to do if you disagree with an HMRC decision.

9. Unjust enrichment and the reimbursement scheme

9.1 What is unjust enrichment

This section only applies to claims made on or after 26 May 2005 claiming a refund or credit of overdeclared output tax. The unjust enrichment provisions for claims made before that date are not included in this notice but are covered by Revenue & Customs Brief 05/09.

We will refuse claims for unjust enrichment where a trader:

  • has charged VAT to his customers that he ought not have charged
  • has passed the economic burden of the wrongly charged VAT on to his customers
  • has suffered no loss or damage as a result of having passed the mistaken charge to his customers
  • is unable or unwilling to reimburse his customers with any amounts paid to him by HMRC

We may invoke the defence of unjust enrichment in circumstances where you make a claim for a credit of VAT relating to output tax accounted for in error.

Unjust enrichment can be applied in respect of the full amount of output tax that you have overcharged and accounted for in error. However, HMRC will only pay you what is left after all outstanding liabilities have been taken into account. For example, where you’re claiming output tax wrongly charged on supplies that have turned out to be exempt, any input tax that you deducted in relation to those supplies may be set against the amount claimed.

Unjust enrichment can also be applied to only part of a claim. In certain cases you may have passed on only part of the VAT charged in error to your customer because you chose to absorb the costs to some of the mistaken charge in order to remain competitive.

9.2 What are the reimbursement scheme arrangements

Under these arrangements you can obtain a refund of VAT you accounted for in error (which your business customers or non-VAT-registered customers paid to you), and avoid being unjustly enriched by passing it back to the people who bore the burden of the mistaken charge to VAT. But you can only do so if you agree to use the reimbursement scheme (‘the scheme’).

9.3 If you do not wish or are unable to refund the money

If you agree that repayment would unjustly enrich you but you do not wish, or are unable, to refund any money to your customers you cannot obtain a refund from us.

The reimbursement scheme applies where you accept, or we prove, that by receiving a refund of sums wrongly accounted for as output tax your business would be unjustly enriched at your customers’ expense and you wish to refund (to those customers who bore the burden of the mistaken charge to VAT) the money they overpaid. If your customer was able to deduct all your mistaken VAT charge as input tax we will not regard them as having borne the burden of the charge.

In such cases we will only make a refund of overpaid VAT if you agree to reimburse those customers in accordance with the terms of the scheme.

9.4 Who can use the scheme

All businesses currently registered for VAT who wish to refund to their past customers any money they overpaid as VAT can use the scheme.

You can also use the scheme if you’re no longer registered for VAT – you will be subject to the same terms and conditions as VAT-registered businesses.

9.5 Appeal when your claim has been rejected

The existence of the scheme does not affect your right to claim that you would not be unjustly enriched.

If we reject your claim on the grounds of unjust enrichment, you still have the right of appeal.

If the tribunal finds in our favour you can still use the scheme if you wish.

9.6 Conditions when you could get a refund

Under the reimbursement scheme we will only make a refund to you if you agree to:

  • sign an undertaking in the format set out in section 10 of this notice – once signed, you cannot amend it
  • make all refunds to customers within 90 days
  • repay any residual amounts not returned to your customers after 90 days to us within 14 days – we will not send reminders – if you fail to do this we will assess for the residue
  • pass any statutory interest paid with the refunds to customers, this is subject to the same terms and conditions as the refund

9.7 Records to keep

You must keep the following records:

  • names and addresses of those customers you intend to reimburse
  • total amount of money paid to each customer
  • amount of interest, if applicable, paid to each customer
  • date you refunded the money

9.8 Who counts as a customer

Your customers – called ‘Consumers’ in the regulations – include everyone to whom you have made sales, whether they are registered for VAT or not.

9.9 Making repayments

You should have the scheme ready to implement as soon as we receive your signed undertaking and begin contacting customers straight away.

A late start to refunding the money without good cause will not be seen as a valid reason for extending the 90 day refund limit.

9.10 Repaying statutory interest to you

We will pay any statutory interest claim, where the sums being reimbursed were wrongly accounted for because of our error. Any statutory interest paid under this scheme is subject to the same terms and conditions as any other money returned under the schemes and you must refund it to your customers. This is because it is the customers who were deprived of the use of the money, not you (as the claimant) who collected it from them to pay to us.

You must refund any statutory interest in full. You must return any residue (any amounts that you have been unable to refund) to us within the specified time limit of 14 days.

If you’re having difficulty working out how much interest is due to your customers, your local VAT business advice centre will be happy to provide a printout of the statutory interest calculation. This will show interest on a period-by-period basis. You will then be able to divide interest payable for a particular period into the amount overpaid for the same period. This should determine approximately what’s due to your customers for a particular period.

9.11 Checks HMRC may make

To make sure that you’re refunding your customers in the agreed manner, we may ask to see your scheme records. We will give you written notice of our intention to see these records.

9.12 Charging costs you incur to the refunds

You must not take out of the refund any costs you incur in administering the scheme. If you do, we will assess you.

10. Undertaking for the reimbursement scheme

In relation to a claim for £(insert amount) made on (insert date) relating to prescribed accounting period(s) (insert accounting period(s)) made under section 80 VAT A 1994. In accordance with the terms of section 80A VATA 1994 and regulations 43A to 43G of the Value Added Tax Act Regulations 1995, Part VA Reimbursement Arrangements (Statutory Instrument 1995/2518), I agree to comply with the following reimbursement arrangements.

‘I, the undersigned, can identify the names and addresses of consumers whom I intend to reimburse. I will reimburse those persons, in cash or by cheque, all of the amount credited by HMRC under section 80(1) or 80(1A) of the VAT Act 1994, together with any associated interest, without any deduction, for whatever purpose, within 90 days of receiving the credit and I understand that I cannot use the credit for any other purpose. Furthermore, where some or all of the credited amount to be reimbursed has been paid or repaid to me and I have not reimbursed some or all of it to consumers, I will, without reminder, notify HMRC and return the balance together with any associated interest to HMRC within 14 days of the 90 days expiring. Where the credited amount has not been paid or repaid to me, and I have not reimbursed some or all of it to consumers, I will notify HMRC of that amount of credit and associated interest I have not reimbursed to consumers within 14 days of the 90 days expiring. I will keep the necessary records as set out in the Regulations and I will comply with any notice given to me by HMRC about producing the records I am required to keep.’

Signature……………………………………………………………………………………….

Position in business……………………………………………………………………………

Name……………………………………………………………………………………………

Address…………………………………………………………………………………………

……………………………………………………………………………………………………

………………………………………………………………………………………………….

VAT Registration Number……………………………………………………………………

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Published 29 July 2013