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HMRC internal manual

VAT Assessments and Error Correction

HM Revenue & Customs
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Recovery Assessments: Legal provisions for recovery

 When we discover that a trader has been credited or repaid a claim under Section 80 VATA 1994 which is subsequently found to be incorrect, our recovery powers are contained in Section 80(4A). It states;

‘80(4A) Where -

an amount has been credited under subsection (1) or (1A) above to any person at any time on or after 26th May 2005, and

the amount so credited exceeded the amount which the Commissioners were liable at that time to credit to that person,

the Commissioners may, to the best of their judgement, assess the excess credited to that person and notify it to him.’

In order to make a Section 80(4A) recovery you must ensure that the amount you are seeking to recover does in fact relate to a Section 80 claim.

 Note: Prior to the 26th May 2005, claims for over-declared output tax on repayment returns were not in fact Section 80 claims. This was because the law at that time required a trader to have actually paid us the amount he was reclaiming

Please see VAEC4011 if the assessment is to recover money paid or credited following a mistake of law.