VAEC2142 | Types of assessment: Prime assessment information: Computer calculations formula 2

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 two is used when an assessment calculation is based on a previous period liability.

The trader’s liability in any one of three preceding periods is used in comparison with the average liabilities of the other traders within the same trader group for the current and previous period.

Liability in any one of the trader’s 3 previous periods x Formula 2 analogue figure, see VAEC2140 x Number of days in the period ÷ Number of days in the previous period used in the calculation

Note: The minimum formula 2 factor that may be used is 0.9500