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HMRC internal manual

VAT Assessments and Error Correction

Recovery assessments: Recovery of VAT credit claimed on a VAT return

If you find that the amount of VAT credit claimed on a repayment return was incorrect, you will need to make and notify a preferred assessment for the prescribed accounting period of the return and an alternative assessment for the prescribed accounting period in which the repayment was made or credited to the registered person.

The background to the need for an alternative assessment is explained at VAEC4070.


You must not issue the computer output documents (VAT655 & VAT667).

Complete and process a VAT641 allocating the tax to the period the return was made for, but do not issue the computer outputs to the registered person.

To ensure this happens you should attach an EF note to the VAT641 stating “Do not issue outputs - for accounting purposes only”. Your note must start with this message to ensure that it is clear on the preview pane showing the first lines of attached notes. Additionally, you can also inset a suppression request message on the VAT641 in either the Keying stamp box or the reason box.

Notify the preferred and alternative assessments using specimen letter VAT(LC)27a: ‘Recovery Assessment - VAT credit claimed on a return’, which is available on SEES.