HMRC internal manual

VAT Assessments and Error Correction

VAEC2260 - Type of assessment: Prime assessments information: Additional assessments

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

An additional assessment is, most commonly, an assessment made in addition to a prime assessment in order establish the true liability for a period where a return has not been submitted. 

This is provided for in Section 73(6) VAT Act 1994, which enables you to make more than one assessment in respect of a prescribed accounting period should further information subsequently come to your knowledge.

Section 73(6)

‘An assessment under subsection (1), (2) or (3) above of an amount of VAT due for any prescribed accounting period must be made within the time limits provided for in section 77 and shall not be made after the later of the following -

But (subject to that section) where further such evidence comes to the Commissioners knowledge after the making of an assessment under subsection (1), (2) or (3) above, another assessment may be made under that subsection, in addition to any earlier assessment.’

In order to make an additional assessment you must have new evidence of facts, see VAEC1300. That is relevant information which was not available to HMRC at the time the prime assessment was raised.

Where information indicating an additional liability comes to your knowledge after a prime assessment has been made, for example during a subsequent assurance visit, the first option should always be to obtain a completed VAT return.

However, where no return is forthcoming an assessment for the additional amount should be made. The normal time limits under Section 73(6) and Section 77 apply to the making of an additional assessment, see VAEC1100.

Additional assessments are made and notified following the normal VAT641 procedures, see VAEC8620.