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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: VAT: DMB manual processing: error returns

Notification of Error Returns to Debt technical Offices

Accounting and Adjustments (ACCADJ) take initial actions on Error Returns. If they are unable to complete the action, the case is then notified to the DMU on D570 prints through EF. These are generated twice monthly at the same time as the enforcement runs.

The DMB Manual Processing caseworker should only commence action 2 months after ACCADJ have commenced the initial action to avoid any cross over or duplication of work. There are various reasons why an error return appears and they need correcting.

Possible errors are:

  • an addition error
  • Boxes 6 and 7 have not been completed
  • amounts have been put in the wrong boxes
  • keying error
  • wrong return has been used.

Correction of an Error Return

Once the D570 is received in the DTO

  • check VISION R1 screen to see if the period is still in error. If the period is showing as ‘error return’ then action needs to be taken to remove it
  • check The RN screen on VISION to see what the error is.

Error obvious or easily corrected

If it is easily corrected

  • contact the customer to discuss the error and
  • request that they send in a corrected return and when received
  • forward it to ACCADJ.

Error not obvious

If the error is not obvious

  • order a copy of the return through VISION using option 2 and then 8 and then fill in the relevant details. These can also be obtained by e-mailing ‘Microfilm Retrievals’.
  • send it to the customer with a covering letter asking for the return to be corrected and sent back.

If there has been no response within 14 days,

  • consider the time limits on raising assessments

If an assessment has not already been raised

  • raise one and also
  • send SEES letter INDE20.

If an assessment has previously been raised

  • complete a VAT 304 to re instate the assessment and also
  • send SEES letter INDE20.

No response - all cases

If the customer does not respond to our requests but the error is small and can be easily resolved

  • complete a manuscript VAT return with the correct figures and
  • forward it to ACCADJ for input.

If the error relates to a claim return and there is no response from the customer, rather than re-instate an assessment

  • complete a VAT127 (Nil pro-forma) to nil the period
  • send SEES letter INDE20, selecting the option which confirms the claim will not be paid.