HM Revenue and Customs Brief 38/08
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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Inland Revenue, this practice is not considered lawful and will be withdrawn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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Article Published/Sorted/Amended on Scopulus 2008-08-06 22:20:47 in Tax Articles
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