Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Accounting Manual

Examples and letters: letter 1 - initial warning letter of intention to change stagger in MTIC cases

Note: This section is referred to at VATAC5200 and VATAC6700.


Letter 1




[Name and VRN]

HMRC, in accordance with their powers under VAT Regulations 1995/2518 Regulation 25(1), intend to direct that the VAT accounting periods for [name] will be changed from monthly to quarterly.

The reason for this decision is that considerable amounts of VAT have been lost to HMRC within the sequential chains of transactions entered into by [name], due to taxable person(s) in these supply chains defaulting on their VAT payments.

A period of 14 days from the date of this letter will now be allowed to give the company the opportunity to make representation about this decision. If the Commissioners do not hear from you by [14 days from date of letter], then the accounting period will be amended to quarterly returns with effect from [date].