VAEC3562 - Circumstances that affect assessments: Procedures for dealing with amounts due from redundant traders

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.

If an amount due to HMRC is discovered, the trader must be advised of the tax due, by using one of the normal assessment notification letters currently available on SEES, for example VAT(LC)25, VAT(LC)16. No notice of assessment form VAT655 will be generated by the computer system so, in your SEES letter, remove any reference to confirmation of the assessments being sent separately. You should produce three copies of the letter and distribute it as follows

• original to trader
• a second copy to trader headed ‘REMITTANCE ADVICE’
• a copy to be retained in the trader’s electronic folder, and forwarded to Redundant Trader EF folder 566REDUN.

The VAT Reconciliation Team will monitor for the payment and let you know when it is received. If it hasn’t been received after 30 days they will notify you and will refer the debt to DMB EEC (DMB Excise, Environmental and Customs Team) for debt management action.