Special valuation provisions: the procedure for issuing a Notice of Direction
- The Notice of Direction should:
- Be given in the form shown at VATVAL07800
- Not deviate from the wording shown at VATVAL07800
- Not refer to any other matters;
- Have the trader’s full name and address;
- Have the address of the relevant HMRC office;
- Bear the date of posting (or date of delivery if by hand);
- Be signed by a Senior Officer or above.
- The date from which the notice is to become operative should be at least 7 days later than the date upon which the notice is being issued.
- Only allow a longer period where the trader requests a short period of grace for administrative reasons such as to revise accounting arrangements or update computer programmes
- If considering a longer period, you should take the potential loss of revenue into account.
- Notices to partnerships must be addressed to the precedent partner (except in Scotland where the notice may be addressed in the name of the firm). In cases of doubt, issue a copy to each partner.
- Date and post the original of the notice to the trader’s last recorded address or deliver it by hand.
A copy can be sent by e-mail, if the protocols with the business allow this means of communication.
- Stamp the certificate of issue on the duplicate copy of the Notice and sign it. The certificate must be in the form set out in VATVAL07800 and VATVAL07900
- Note the issue of the Notice in a central register maintained in the VAT Office.
- File the duplicate Notice in the trader’s records e.g. Electronic Folder.
- Retain evidence of the proper authority for as long as the Direction is in force.
You will find some examples of direct selling arrangements and their treatment at VATVAL08000. If a trader claims that an error in the issuing of a Notice has invalidated it you should contact VAT Supply Team for advice.