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HMRC internal manual

VAT Assessments and Error Correction

HM Revenue & Customs
, see all updates

Type of assessment: Prime assessments information: Deregistered traders

Final returns are manually issued and monitored by the Deregistration Unit. If a trader fails to submit his final return an assessment can be issued for the final period (99/99) 36 days after the issue of the return.

If any earlier periods have not been assessed, and no return has been submitted, an assessment should be made and notified or a nil return input, as appropriate.

This action should be taken by the Deregistration Unit before a case is passed to the Debt Management Unit.

A D1498 report is issued monthly listing deregistered traders who have no liability on file for a period which has not been assessed and is in danger of going out of time for assessment.

The computer system VISION is to be checked and assessments made and notified for any outstanding periods. In any month when there are no reportable cases a NIL printout will be produced.

Assessments for the final period (99/99) are to include VAT on stock and assets except where

If the trader is using the cash accounting scheme the net tax outstanding from the scheme must be included in the assessment.

If the trader has submitted a normal return which includes the last day of registration (not necessarily the last day of trading), see VAEC2520.

If no return has been submitted covering the last day of registration, see VAEC2530.

Note: Deregistered traders are excluded from the Inflated Assessment Regime, see VAEC2240, even though the Inflated Assessment Indicator remains set.