VAEC1240 | Powers of assessment: VAT assessment powers: Out of time assessments

There may be occasions when HMRC is unable to assess under-declarations of tax because of the time limit rules explained in this section.

If the tax was not assessable on discovery, e.g. it relates to a period more than four years ago, there is no requirement to record details and/or notify Debt Management and Banking.

However, if the tax should have been assessed on discovery but has gone out of time to be assessed, either because of trader delay, departmental delay or official oversight, the tax lost must be reported to Corporate Finance, Tax Accounting & Revenue Analysis.

It must be reported on Form C&E283 and sent via email to the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)mailbox.
The form should be completed in the normal way and the ‘OTHER’ box ticked in the write off section.

In the case description box you should state either

• ‘Out of time assessment due to trader delay’ or

• ‘Out of time assessment due to official error’.

You should refer to Accounting Guidance on accounting for revenue losses before reporting a tax loss for accounting purposes, see HMRC Tax Accounting Policies: Revenue Losses