SolvedVDSOG800 | Progression through the surcharge system
From HM Revenue & Customs · VAT Default Surcharge Officer's Guide
The table below shows how a taxpayer may move through the surcharge system.
| Default | Turnover is less than £150,000 | Turnover is £150,000 or more |
|---|---|---|
| First | Letter offering help and support issued. | Surcharge Liability Notice issued – taxpayer enters a surcharge period. |
| Second | Surcharge Liability Notice issued – taxpayer enters a surcharge period. | Surcharge Liability Extension Notice and 2% surcharge assessment issued. (No surcharge if it less than £400.) |
| Third | Surcharge Liability Extension Notice and 2% surcharge assessment issued. (No surcharge if it less than £400.) | Surcharge Liability Extension Notice and 5% surcharge assessment issued. (No surcharge if it less than £400.) |
| Fourth | Surcharge Liability Extension Notice and 5% surcharge assessment issued. (No surcharge if it less than £400.) | Surcharge Liability Extension Notice and surcharge assessment issued for 10% or £30, whichever is more. |
| Fifth | Surcharge Liability Extension Notice and surcharge assessment issued for 10% or £30, whichever is more. | Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more. |
| Sixth and more | Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more. | Surcharge Liability Extension Notice and surcharge assessment issued for 15% or £30, whichever is more. |