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HMRC internal manual

VAT Assessments and Error Correction

HM Revenue & Customs
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Protective assessments: Action following an adverse judgement

Where a tribunal decision or a court judgement is unfavourable, the relevant policy team will, in most instances, usually advise further action. Some examples are below.

Assessment rendered ‘invalid’ by a tribunal decision or court judgement, but litigation is ongoing

Do not withdraw the assessment, or indicate that the assessment has been withdrawn. If the business requests, you may give credit for the disputed amount, including any penalty and default interest, subject to

  • any overriding guidance from the Policy Directorate responsible for the lead case
  • capping and unjust enrichment rules.

How to repay or credit VAT, penalty or default interest without withdrawing an assessment

Complete a VAT915 for the relevant amount, rounded up to the nearest pound. Once countersigned, you should send the form to Banking, Accounting & Adjustments, Regian House, Liverpool, with clear instructions as to the action required.

Keep a clear note, cross-referencing the credit to the relevant assessment reference number. Once the credit shows on the trader’s VAT account notify the business by letter, a specimen of which can be found on SEES.