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HMRC internal manual

VAT Assessments and Error Correction

Recovery assessments: Under Section 80(4A) and Section 78(A)

The VAT 641 should be prepared and processed as normal but with the output documents inhibited. Input of the VAT 641 should serve only as an accounting mechanism to update the trader’s accounting main file record.


For recovery of Section 80 payments and statutory interest (i.e. assessments made under Section 80(4A) and 78(A)), please follow the procedures outlined at VAEC5010.

Businesses should be advised that default interest will normally be due if the assessment(s) is/are not paid within 30 days. These interest assessments will need to be calculated and notified manually.

Officers should check to see if the assessment is paid after 30 days and thereafter periodically if the assessment remains unpaid. It is recommended that this should be done at 3 monthly intervals.

Full guidance on default interest, and the circumstances in which it may be appropriate, see VCP10890.

Note: If the Section 80(4A) assessment is as a result of a mistake in law please refer to VAEC4010.


For recovery of credits claimed by the trader by error correction, prior to 26th May 2005, and assessed under Section 73(2) follow the procedures at VAEC4080.

Businesses should be advised that default interest has been charged and further interest may accrue if the VAT is not paid within 30 days.


You may be faced with a situation where you need to assess the same business for a combination of amounts under

  • Section 80(4A), and/or
  • Section 73(2), and/or
  • statutory interest under Section 78A.

In such circumstances, follow the appropriate processing guidance on pages VAEC4080 and VAEC5010 for each separate assessment type.

However, process all the assessments on the same VAT 641. Any default interest you are able to charge at the time of the assessments can also be included.