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HMRC internal manual

VAT Assessments and Error Correction

From
HM Revenue & Customs
Updated
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Powers of assessment: Best judgement: The law

The law requires that when an officer makes an assessment he must ensure that his assessment is made to best judgement, see VAEC1420. The law states,

Section 73 (1) VATA 1994

… they may assess the amount of VAT due from him to the best of their judgement…

Section 78A (1) VATA 1994

… the Commissioners may, to the best of their judgement, assess the amount so paid to which that person was not entitled …

Section 80 (4A) VATA 1994

… the Commissioners may, to the best of their judgement, assess the excess paid to that person …

Section 80B (1) VATA 1994

… the Commissioners may, to the best of their judgement assess the amount due from that person..

Schedule 9A paragraph 6(1) VATA 1994

… the Commissioners may, to the best of their judgement, assess the amount of unpaid tax as tax due from the person to whom the direction was given or another relevant person…

You will note that there is no reference to best judgement for assessments made under Section 73(2) VATA 1994. However, it is policy that these assessments should also be made to the standards of best judgement