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HMRC internal manual

VAT Default Surcharge Officer's Guide

From
HM Revenue & Customs
Updated
, see all updates

Progression through the surcharge system

The table below shows how a taxpayer may move through the surcharge system.

Default Turnover is less than £150,000 Turnover is £150,000 or more
First Letter offering help and support issued. Surcharge Liability Notice issued – taxpayer enters a surcharge period.
Second Surcharge Liability Notice issued – taxpayer enters a surcharge period. Surcharge Liability Extension Notice and 2% surcharge assessment issued. (No surcharge if it less than £400.)
Third Surcharge Liability Extension Notice and 2% surcharge assessment issued. (No surcharge if it less than £400.) Surcharge Liability Extension Notice and 5% surcharge assessment issued. (No surcharge if it less than £400.)
Fourth Surcharge Liability Extension Notice and 5% surcharge assessment issued. (No surcharge if it less than £400.) Surcharge Liability Extension Notice and surcharge assessment issued for 10% or £30, whichever is more.
Fifth Surcharge Liability Extension Notice and surcharge assessment issued for 10% or £30, whichever is more. Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more.
Sixth and more Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more. Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more.