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HMRC internal manual

VAT Assessments and Error Correction

How to assess and correct: VAT Amendments: VAT656 details of period section

This section of the VAT656 gives details of the tax assessment broken down into periods. Interest is not period specific and is therefore only shown on the assessment summary.

Form VAT656 provides the assessment type and the reason code for each details line completed on the VAT641. The notes which accompany the assessment explain the reason codes to the trader.

The computer will print the details of the prescribed accounting period to which the assessment relates. Care should be taken when issuing amended assessments containing

Bulk periods - Period reference 00/00

The period start and end dates must be inserted manually by the local office. Failure to complete these dates renders the assessment invalid.

Several cases have come to light where these dates have been omitted. If it comes to your attention that this has occurred, provided the time limits for issuing the original assessment are still satisfied, a valid assessment must be issued.

This can be done by inputting a

  • VAT643 to withdraw the bulk element only of the original assessment. The trader must not be advised of this action,
  • VAT641 to produce a new VAT655 on which the start and end dates are manually inserted.

A covering letter should accompany the new documents to inform the trader that the original assessment was invalid. If the time limits for issuing the original assessment have expired, you should contact Tax Administration, Litigation and Advice (TALA) at Caseworker service for technical queries for guidance on any way of saving the assessment.

 Dropped periods

The outputs for assessments on dropped periods only show a period reference. As our legal advisors have advised that period dates should also be included on the VAT656, officers should insert this information manually.

Periods after the date of insolvency:

The VAT656 should be checked to establish if any periods have been assessed for interest after the insolvency date. If such a situation arises you should contact Debt Management and Banking, National Insolvency Unit.