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HMRC internal manual

VAT Assessments and Error Correction

HM Revenue & Customs
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Prime assessments procedures: Trader notifies you of a low assessment

  • increase the tax assessment and any associated surcharge to reflect the traders true liability. The accounting file is to be amended using a form VAT146 countersigned as appropriate and,
  • advise the Debt Management Unit if the trader debt on file is above the distress threshold (as an additional amount is to be placed on file)

Notification from the trader will normally be by letter. However, if the trader notifies you by telephone, the following information should be recorded and held for future reference in the traders folder

  • the date and time of the call
  • the caller’s name and status within the business, and
  • the amount and any other relevant information

The caller should be reminded of the importance of written confirmation, or rendering the return. The officer receiving the call should be identified in the file,