VAEC2141 | Types of assessment: Prime assessment information: Computer calculations formula 1

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.

Formula 1 is used when an assessment calculation is based on the trader’s taxable turnover.

The taxable turnover is used in comparison with the average liability and average taxable turnover of the other traders within the same trade group.

Calculation for quarterly returns

Trader’s taxable turnover x Formula 1 analogue figure, see VAEC2140

Calculation for monthly returns

Traders taxable turnover x Formula 1 analogue figure x Number of days in the month ÷ Numbers of days in the last 3 months