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HM Revenue and Customs Brief 38/08


HM Revenue and Customs -Tax Authorities

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Issued 1 August 2008

VAT: Default Interest and net errors of less than 2000

The current practice, described in paragraph 2.4 of Notice 700/43 (Default Interest) and note 4 on form VAT 652, of not charging default interest on net errors of 2000 or less separately notified to HMRC, will continue until the end of August 2008. However, following the decision in Wilkinson v Commissioners of Inland Revenue, this practice is not considered lawful and will be withdrawn with effect from 1 September 2008. This means therefore that all error notifications (previously known as voluntary disclosures) requiring an assessment may be subject to a default interest charge, irrespective of the amount involved. However as before, de minimis net errors can continue to be corrected on a VAT return and will not attract interest.

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Crown Copyright 2008.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.

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Article Published/Sorted/Amended on Scopulus 2008-08-06 22:20:47 in Tax Articles

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