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HMRC internal manual

VAT Assessments and Error Correction

From
HM Revenue & Customs
Updated
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Error correction for VAT: Credibility queries: Pre repayment procedures

When a return is selected for verification because of a pre repayment credibility query, Credibility Team will forward a VCU229 via Electronic Folder (EF), indexed as a UCRE to the Regional EF In Tray.

Action to be taken if no adjustment is required

Authorise the UCRE countersigned through the EF Notes system at the appropriate level in accordance with the locally agreed monetary limits. Forward the countersigned UCRE via EF to Credibility Team, EF in-tray reference 321CRED1.

Action to be taken if adjustment is required

Authorise the UCRE countersigned through the EF Notes system at the appropriate level in accordance with the locally agreed monetary limits.

You should notify the adjustment to the trader by letter.

If a net repayment remains due, whether greater than or less than the original repayment claimed, use the specimen letter VAT(LC)13: Pre credibility net repayment letter, which is available on SEES.

If a net payment is found to be due to the Department, use the specimen letter VAT(LC)14: Pre credibility payment due letter, which is available on SEES.

The letter is to be produced on Regional Office headed paper and should be processed as follows

  • issue original to trader. The letter should be issued in duplicate with the duplicate endorsed “Remittance Advice”
  • scan to EF, capture to traders folder & link to the UCRE
  • scan & capture any associated supporting documents to the trader’s electronic folder.

Forward the countersigned UCRE via EF to Credibility Team, EF in-tray reference 321CRED1.

Where it is necessary to adjust more than one return of this kind, you should prepare a separate letter for each.