HMRC is changing the central assessment process for late VAT returns.
Where a taxpayer fails to file a VAT return by the due date, a central assessment will be raised automatically by HMRC’s system. That assessment is sent to the taxpayer and the amount payable is shown as outstanding on their VAT account.
The assessment is an estimate of the VAT that would have been payable had the return been submitted.
When the actual VAT return is subsequently filed, the assessment is cancelled.
- Level of the assessment
- Cancelling central assessments
- Seeing this in action
- Advice to taxpayers
Source: www.accountingweb.co.uk
