VAEC9690 - Demand for VAT: Recovering a debt to the Crown: Procedure table
Calculate the amount recoverable as
Amount charged or included as VAT on invoices issued, less amount of concessionary relief, if appropriate
Consider a Penalty
If an unauthorised issue penalty is to be imposed, see VCP11200 for guidance.
If a penalty is not appropriate then take the following action
- Prepare an original and three copies of demand letter VAT(LC)47, which is available on SEES, for signature by line management,
- If concessionary relief is allowed – please select the appropriate option on the VAT(LC)47
Demand Letter
Contact Cumbernauld Accounting Team by using internal e-mail (see below) or on 03000 583946, to obtain a Demand Reference Number, the Demand Ref Number must be quoted on the letter and in all future correspondence.
Distribute letters as follows;
- Original and Copy 1 To the trader*
- Copy 2 Using internal mail send to Cumbernauld Accounting Team, Corporate Treasury (Corporate Finance) with a reference to this table.
- Copy 3 Scan/capture to EF.
If the trader pays within 30 days of the demand letter, Cumbernauld Accounting Team will bring to account and update HMRC systems. Time to pay requests should be referred to the Liverpool Non-VAT Debt Management Unit.
If the trader does not pay within 30 days, the Cumbernauld Accounting Team will update HMRC systems and refer the case to Liverpool Non-VAT Debt Management Unit.
*If the trader is a partnership registered in the names of the partners, send separate letters to each partner.
Consider Fraud
If you consider fraud is an issue, before demanding payment, complete form ROST A and send via your Senior Officer to the Regional Referral Team. The VAT Small and Medium Enterprises Assurance Manual (VSME) provides guidance on the reporting of suspect trading.