CH56300 - Assessing Time Limits: Tables of time limits for relevant taxes: VAT

1. Assessment

Assessment of VAT not due to careless or deliberate behaviour

  • where the person failed to make a return
  • where the person failed to keep documents and afford facilities to verify returns
  • where the person gave an incomplete or incorrect return

Time Limits

4 years from

  • the end of the prescribed accounting period, or
  • the date of importation or acquisition concerned

Subject to

  • a) 12 months evidence of facts rule if assessment made more than 2 years after the end of the accounting period
  • b) transitional provisions, see CH51530, and
  • c) see item 15 below for a deceased person

Legislation

VATA94/S77 (1)(a) as amended by FA08/SCH39/PARA34(2)

2. Assessment

Assessment of VAT due to careless behaviour of the person or agent

  • where the person failed to make a return
  • where the person failed to keep documents and afford facilities to verify returns
  • where the person gave an incomplete or incorrect return

Time Limits

4 years from

  • the end of the prescribed accounting period, or
  • the date of importation or acquisition concerned

No extension of VAT assessing time limit for careless behaviour

Subject to

  • a) 12 months evidence of facts rule if assessment made more than 2 years after the end of the accounting period
  • b) transitional provisions, see CH51530, and
  • c) see item 15 below for a deceased person

Legislation

VATA94/S77 (1)(a) as amended by FA08/SCH39/PARA34(2)

3. Assessment

Assessment of VAT due to deliberate behaviour of the person or agent

  • where the person failed to make a return
  • where the person failed to keep documents and afford facilities to verify returns
  • where the person gave an incomplete or incorrect return

Time Limits

20 years from

  • the end of the prescribed accounting period, or
  • the date of importation or acquisition concerned

Subject to

  • a) 12 months evidence of facts rule if assessment made more than 2 years after the end of the accounting period
  • b) transitional provisions, see CH51530, and
  • c) see item 15 below for a deceased person

Legislation

VATA94/S77 (4) and S77 (5)(a) as amended by VATA94/S77(4A) as inserted by FA08/SCH39/PARA34(3)

4a. Assessment

Assessment under VATA94/S73(2) to recover an incorrect VAT payment or credit – no careless or deliberate behaviour

Time Limits

The later of

  • 2 years after the end of the prescribed accounting period in which the claim was wrongly credited, refunded or paid, or
  • 4 years from the end of the prescribed accounting period in which the refund or credit was paid or credited

Legislation

VATA94/S77 (1) as amended by FA08/SCH39/PARA34 and VATA94/S73(6A) as inserted by FA08/S120

4b. Assessment

Assessment under VATA94/S73(2) to recover an incorrect VAT payment or credit – careless behaviour

Time Limits

The later of

  • 2 years after the end of the prescribed accounting period in which the claim was wrongly credited, refunded or paid, or
  • 4 years from the end of the prescribed accounting period in which the refund or credit was paid or credited

Legislation

VATA94/S77 (1) as amended by FA08/SCH39/PARA34 and VATA94/S73(6A) as inserted by FA08/S120

4c. Assessment

Assessment under VATA94/S73(2) to recover an incorrect VAT payment or credit – deliberate behaviour

Time Limits

The later of

  • 2 years after the end of the prescribed accounting period in which the claim was wrongly credited, refunded or paid, or
  • 20 years from the end of the prescribed accounting period in which the refund or credit was paid or credited

Legislation

VATA94/S77(4) and (4A) as amended by FA08/SCH39/PARA34 and VATA94/S73(6A) as inserted by FA08/S120

4d. Assessment

Assessment under VATA94/S73(2) to recover an incorrect VAT payment or credit – all behaviours

Time Limits

4 and 20 year time limits are subject to

  • a) 12 months evidence of facts rule if assessment made more than 2 years after the end of the accounting period in which the refund or credit was paid or credited
  • b) transitional provisions, see CH51520 and CH51530, and
  • c) see item 15 below for a deceased person

Legislation

VATA94/S73(6)

5. Assessment

Assessment under VATA94/S80(4A) to recover an excess credit

Time Limits

Not later than 2 years from

  • the end of the prescribed accounting period in which the amount was wrongly credited, or
  • the date on which evidence of facts sufficient to justify the making of the assessment comes to our knowledge

Legislation

VATA94/S80(4AA) as inserted by FA08/S120

6. Assessment

Assessment of VAT due to a person’s

  • failure to notify liability to register regardless of behaviour
  • failure to comply with other notification obligations regardless of behaviour
  • failure to provide information about a prescribed avoidance scheme regardless of behaviour
  • participation in a transaction knowing (or ought to have known on the facts of the case) that it was part of arrangements of any kind intended to bring about a loss of VAT

Time Limits

20 years from the end of the prescribed accounting period or importation or acquisition concerned

Subject to

  • a) 12 months evidence of facts rule if assessment made more than 2 years after the end of the accounting period
  • b) transitional provisions, see CH51530, and
  • c) see item 15 below for a deceased person

Legislation

VATA94/S77 (4) and S77 (5)(a) as amended by, and VATA94/S77 (4A) as inserted by, FA08/SCH39/PARA34(3)

7. Assessment

Assessments to default surcharge, VATA94/S59 and S59A

Time Limits

  • (i) 4 years from the end of the prescribed accounting period, importation or acquisition

Legislation

VATA94/S77(1)(a)

But

Time Limits

  • (ii) 2 years of the date on which the VAT for the prescribed accounting period is finally determined
  • (iii) see item 15 below for assessments on a deceased person

Legislation

VATA94/S77(2) not amended by FA08/SCH39

8. Assessment

Assessments to interest on VAT recovered or recoverable by assessment, VATA94/S74

Time Limits

  • (i) 4 years from the end of the prescribed accounting period, importation or acquisition

Legislation

VATA94/S77(1)(a)

But

Time Limits

  • (ii) assessments to be made within 2 years of the date on which the VAT for the prescribed accounting period is finally determined

Legislation

VATA94/S77(2) not amended by FA08/SCH39

And

Time Limits

  • (iii) assessment to be confined to the last 3 years of the period
  • (iv) see item 15 below for assessments on a deceased person

Legislation

VATA94/S74(3)(a)(b) not amended by FA08/SCH39

9. Assessment

Assessments to recover overpayments of interest, VATA94/S78A

Time Limits

  • 2 years after evidence of facts sufficient to justify the making of the assessment comes to our knowledge.
  • see item 15 below for assessments on a deceased person

Legislation

VATA94/S78A(2) not amended by FA08/SCH39

10. Assessment

Penalty assessments in respect of the mandatory e-filing of VAT returns

Time Limits

  • (i) 4 years from the end of the prescribed accounting period, importation or acquisition

Legislation

VATA94/S77(1)(a)

But

  • (ii) assessments to be made within 2 years of the date on which the VAT for the prescribed accounting period is finally determined
  • (iii) see item 15 below for assessments on a deceased person

Legislation

VATA94/S77(2) not amended by FA08/SCH39

11. Assessment

Penalty assessments relating to

  • EC sales statement
  • breach of record-keeping requirements in relation to transaction in gold

Time Limits

  • (i) 4 years from the event giving rise to the penalty

Legislation

VATA94/S77(1)(b)

But

Time Limits

  • (ii) assessments to be made within 2 years after evidence of facts sufficient to justify the making of the assessment comes to our knowledge

Legislation

VATA94/S77(2A) not amended by FA08/SCH39

And

  • (iii) see item 15 below for assessments on a deceased person

Legislation

VATA94/S69A(4) not amended by FA08/SCH39 for (ii) above

12. Assessment

Penalty assessments for breaches of regulatory provisions specified in VATA94/S69(1)(c) to (f)

Time Limits

  • (i) 4 years from the event giving rise to the penalty

Legislation

VATA94/S77(1)(b)

But

  • (ii) an assessment cannot be made unless a written warning of the consequences of continuing to fail to comply was issued in the 2 years before the date the assessment is made
  • (iii) see item 15 below for assessments on a deceased person

Legislation

VATA94/S76(2) not amended by FA08/SCH39

13. Assessment

Assessment of penalties in respect of

  • incorrect certificates as to zero-rating
  • a failure to notify before 1 April 2010
  • unauthorised issue of invoices before 1 April 2010
  • a breach of a walking possession agreement
  • a breach of regulatory provisions (other than those in VATA94/S69(1)(c) to (f))
  • a breach of record-keeping requirements imposed by directions

Time Limits

  • 4 years from the date of the event giving rise to the penalty
  • see item 15 below for assessments on a deceased person

Legislation

VATA94/S77 (1)(b) as amended by FA08/SCH39/PARA34(2)

14. Assessment

Assessments in consequence of a direction (anti-avoidance provision: groups) under VATA94/SCH9A/PARA6

Time Limits

Assessments to be made within 1 year of the date the direction was given

Legislation

VATA94/Schedule 9A6(6)(a) not amended by FA08/SCH39

15. Assessment

Any assessment of VAT, interest, penalty or surcharge on the personal representatives of a deceased person in respect of periods up to the date of death

Time Limits

Any assessment must be made within 4 years of the date of death. Subject also to the other rules for the particular type of assessment

Legislation

VATA94/S77 (5)(a) and (b) as amended by FA08/SCH39/PARA34(3)