What should a VAT registered business be doing when they receive a central assessment?HMRC have the power to issue assessments to VAT registered businesses where those businesses have failed to submit a periodic VAT return. The central assessment (or prime assessments are they are termed by HMRC) is an estimate of the VAT liability due to HMRC on the outstanding VAT return. The estimates are raised based on one of two mechanisms: prior period liabilities or taxable turnover.
Source: saffery.com
