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VATF71000 | Due diligence and risk assessment: Introduction

From HM Revenue & Customs · VAT Fraud

Note: This manual is currently under review following Brexit. Some content may be withdrawn or revised during this process. If there is anything within this manual you use regularly, please email [email protected] to let us know. In the meantime, you should check the other guidance available on GOV.UK from HMRC.

When looking at the due diligence / risk assessment carried out by the taxable person you should determine and document:

  • what due diligence / risk assessment checks were performed;

  • what the results of the checks indicated;

  • what purpose he believed the checks served;

  • to what extent they were appropriate, adequate and timely in relation to addressing the risks identified; and

  • whether the taxable person took appropriate action in response to the results of the checks (VATF74000).

Examples of the type of due diligence / risk assessment that could be undertaken and what the taxable person should do with the results are discussed in VATF73000 and VATF74000.