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HMRC internal manual

VAT Assessments and Error Correction

Types of assessment: Prime assessment information: Computer calculations formula 1

Formula 1 is used when an assessment calculation is based on the trader’s taxable turnover.

The taxable turnover is used in comparison with the average liability and average taxable turnover of the other traders within the same trade group.

Calculation for monthly returns

Trader’s taxable turnover  x  Formula 1 analogue figure, see VAEC2140

Calculation for monthly returns

Traders taxable turnover  x  Formula 1 analogue figure  x  Number of days in the month  ÷  Numbers of days in the last 3 months