When traders miss the deadline for filing a VAT return, a ‘central assessment’ is raised by HMRC’s system. This is also known as a ‘VAT notice of assessment of tax’.
A central assessment estimates the VAT liability due to HMRC on the outstanding VAT return. The estimate is usually based on the VAT amount owed on previous returns. Other methods of estimation may be used where HMRC does not have historic data.
Source: ICAEW
Latest Posts in "United Kingdom"
- UK to Mandate E-Invoicing for VAT by 2029: Gradual Rollout Planned
- TUC Leader Urges Closer EU Ties, Including Customs Union, to Boost UK Economy and Living Standards
- Navigating Cross-Border VAT: Compliance Essentials for Gibraltar’s Digital Economy and B2B/B2C Risks
- UK Supreme Court Rules on VAT Deductibility for Professional Fees in Share Sale Transactions
- UK Tribunal Rules Personalized Book Services VAT-Exempt as Primary Supply is Book Production
