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HMRC internal manual

VAT Assessments and Error Correction

Section 73(1) and 73(2) assessments: Retail schemes involved

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.

In all cases when an assessment involves a trader who uses a retail scheme, you should confirm

  • which scheme has actually been used
  • whether the trader was entitled to use the scheme , and
  • whether the scheme has been used correctly.

Your response is then determined by the circumstances. If the trader

  • has used a scheme for which they are not eligible, see VAEC3031 
  • changes a scheme without authority, see VAEC3032 
  • operates an eligible retail scheme, see VAEC3033.