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HMRC internal manual

VAT Assessments and Error Correction

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HM Revenue & Customs
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Powers of assessment: VAT assessment powers: Time limits for other assessments

This page deals with the time limits aspects. For more detailed guidance on the various types of assessment see VAEC2010.

Time limits for assessments under section 80(4A) to recover incorrect refunds made under Section 80

By virtue of Section 80(4c) the time limits for making recovery assessments, see VAEC4000, under Section 80(4A) are contained in Section 78A(2). Unlike assessments made under Section 73, Section 80(4) assessments are not tied to prescribed accounting periods nor are they capped in the same way: the capping restrictions in Section 77(1) and (4) apply only to Section 73.

For recovery assessments raised on or after the 19t h March 2008 Section 80(4AA) amends the time limits to either the end of the prescribed accounting period in which the amount was credited or 2 years after the evidence of facts.

 

Time limits for assessments made under Section 78A to recover overpaid interest

The power to assess for overpaid statutory interest was introduced on 4 December 1996 and applies only to any interest paid after 18 July 1996. The time limits for recovery of overpaid interest are contained in Section 78A(2). Under this provision, you have two years from evidence of facts in which to make your assessments.

 

Time limits for making assessments under Section 80(B) for failure to meet obligations imposed under Section 80A

By virtue of Section 80(B), the time limits for making assessments under Section 80(B) are contained in Section 78A(2). Unlike assessments made under Section 73, Section 80 (B) assessments are not tied to prescribed accounting periods, nor are they capped in the same way.

Under the provisions of Section 78A(2) you have 2 years from evidence of facts in which to make your assessments.

 

Time limits for assessments made under Section 73(7), 73(7A) and 73(7B)

The only time limits for assessments made under the above provisions are the capping restrictions contained in Section 77(1) and Section 77(4) - the four and twenty year capping rules.

Time limits for assessments made under Schedule 9A, paragraph 6

The limits for assessments made under Schedule 9A paragraph 6(1), in consequence of a direction given under this Schedule, are contained in Schedule 9A paragraph 6(6).

The assessment must be made within one year of the day on which the direction to which it relates was given.

 

Time limits for assessments made under Section 75

Time limits for making assessments under Section 75(1) in respect of VAT on acquisitions of certain goods by non taxable persons are contained in Section 75(2) and Section 77.