This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Assessments and Error Correction

Prime assessments procedures: Final period assessment for where no return covering last day of registration received

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.

Where you are raising a final period assessment and no return covering the last day of registration has been received a form VAT127 must be completed.

Note: Form VAT127 (pro forma nil return) is to be countersigned by line management or in line with agreed local procedures

Circumstance 1

Periods prior to final period


  • If any period prior to 99/99 has had no liability established by return or assessment, calculate the liability using, if necessary, the examples at VAEC2540.
  • The cash accounting adjustment applies only to the final period of the period immediately after the trader leaves the scheme.

Top of page

Circumstance 2

Final period.


Calculate the amount due as follows

  • Examine recent visit reports and note details of recorded liability if given by the visiting officer. Remember to take account of any additional tax due in the case of cash accounting traders.
  • If no amount is recorded in the traders electronic folder calculate the tax due as a proportion of the tax declared or assessed in the previous period. See VAEC2540 for examples of the calculation method.

Add to the calculated amount the tax due on stock and assets if this is in excess of the de-minimus level specified in Notice700/11

  • You may have to estimate this figure.

Top of page

Circumstance 3

Calculated tax due for final period and earlier un-assessed periods is £100 or less in total.


  • Complete and forward pro-forma nil return form VAT127 for period 99/99 code’0’ and any earlier periods if necessary
  • Advise A&CGs Branch 1B of these cases on a quarterly schedule to include

    • The traders registration number, and
    • The estimated amount of tax due in each case.