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HMRC internal manual

VAT Accounting Manual

Use of estimation for completing VAT returns: estimation without approval

You must not grant approval for returns that have already been made. But if the business wishes to continue using estimation, and meets all the conditions, you may consider giving approval for future returns.

If you find that a business has either:

  • claimed input tax without acceptable evidence of taxable supplies; or
  • used a method of estimation that is unreasonable,

then you may make an assessment for any input tax claimed which did not meet all the conditions for deductible input tax.

If a business challenges an officer’s assessment based on the meaning of regulation 28 or 29 of the VAT Regulations 1995 you should send full details in a (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .