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 for signature by line management,
- If concessionary relief is allowed - use specimen letter VAT(LC)47: Demand for VAT with Concessionary Relief, which is available on SEES
- If relief is not allowed - use specimen letter VAT(LC)48: Demand for VAT no relief, which is available on SEES
Contact Cumbernauld Tax Accounts Processing Centre on 03000 583774, 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* with pre-paid envelope addressed to Cumbernauld Tax Processing Centre, St Mungo’s Rd Cumbernauld, Glasgow, G67 1YZ.
- 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.
On receipt of payment, bring to account and notify the Audit Officer. Time to pay requests should be referred to the Liverpool Non-VAT Debt Management Unit.
If the trader does not pay within 30 days of the demand letter, notify the Audit Officer 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.
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 Small and Medium Enterprises Assurance Manual (VSME) provides guidance on the reporting of suspect trading.