VAEC2530 - Prime assessments procedures: Final period assessment for where no return covering last day of registration received

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

Where you are raising a final period assessment and no return covering the last day of registration has been received a VAT Pro Forma Nil Return form, which is available on SEES, must be completed.

Note: The VAT Pro Forma Nil Return form is to be countersigned by line management or in line with agreed local procedures.

Circumstance 1

Periods prior to final period

Action

  • If any period prior to 99/99 has had no liability established by return or assessment, calculate the liability using, if necessary, the examples at VAEC2540.
  • The cash accounting adjustment applies only to the final period of the period immediately after the trader leaves the scheme.

Circumstance 2

Final period.

Action

Calculate the amount due as follows

  • Examine recent visit reports and note details of recorded liability if given by the visiting officer. Remember to take account of any additional tax due in the case of cash accounting traders.
  • If no amount is recorded in the traders electronic folder calculate the tax due as a proportion of the tax declared or assessed in the previous period. See VAEC2540 for examples of the calculation method.

Add to the calculated amount the tax due on stock and assets if this is in excess of the de-minimus level specified in Notice700/11

  • You may have to estimate this figure.

Circumstance 3

Calculated tax due for final period and earlier un-assessed periods is £100 or less in total.

Action

  • Complete and forward the VAT Pro Forma Nil Return form for period 99/99 code’0’ and any earlier periods if necessary
  • Advise A&CGs Branch 1B of these cases on a quarterly schedule to include
  • The traders registration number, and
  • The estimated amount of tax due in each case.