Type of assessment: Prime assessments information: The inflated assessment regime
Where a trader regularly pays prime assessment and does not make returns, a procedure for the inflation of subsequent prime assessments is invoked. The power to inflate assessments in this way is provided by section 73(8) of the VAT Act 1994. This says
‘In any case where -
then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of VAT greater than that which they would otherwise have considered to be appropriate.’
For guidance on how to apply the Inflated Assessment Regime, see VAEC2550.