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HMRC internal manual

VAT Assessments and Error Correction

From
HM Revenue & Customs
Updated
, see all updates

Type of assessment: Prime assessments information: Return received after assessment raised

Where a return is received in Banking Operations and a prime assessment has been raised, the return will automatically over ride the assessment on the computer system and will be processed in the normal way.

This applies regardless of whether the return is for a greater or lesser amount than the prime assessment

Return equal to or greater than prime and additional assessments

Where a return is received in Banking Operations for an amount greater than, or equal to, the combined amounts of a prime and additional assessment made for the period, the return will simply over ride the previously assessed liabilities and you need take no further action.

Return less than prime and additional assessments

Where a return is received in Banking Operations for an amount lower than the combined totals of a prime and additional assessment made for the period, the return will mismatch on the accounting file and will be referred to the local office for confirmation of whether or not the return is acceptable.

Subsequent enquiries may reveal

  • that the return liability is acceptable
  • that the liability declared on the return is not acceptable and the previous assessments should be maintained
  • that the true liability is greater than declared on the return, but less than previously assessed amount, or
  • that the liability declared on the return is unacceptable and there is yet a further liability (in addition to the prime and additional assessments) to be assessed.

Action should be taken in accordance with VAEC2660 and VAEC2670.