HM Revenue and Customs Brief 7/16 - reminder of withdrawal of the VAT Misdirection
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Reminder of withdrawal of the VAT Misdirection Extra
Statutory Concession 3.5 in cases of VAT liability change
Published 1 February 2016
This brief is issued as a reminder that the misdirection class
concession no longer exists. It also gives notice that with effect from
1 August 2016 HM Revenue and Customs (HMRC) will no
longer routinely consider requests not to pursue the tax due.
Revenue and Customs Brief 24/11 withdrew Business Brief 28/04
item 2 with effect from 1 August 2011. Business Brief 28/04 explained
the then HM Customs and Excise (HMCE)
policy regarding the correction of VAT accounting errors arising from a
change in HMCE’s
interpretation of VAT law.
Business Brief 28/04 contained now outdated references to what
was known as “the misdirection class concession” and examples of the
application of that concession. The brief stated that where a business
chose to register for VAT belatedly in respect of supplies that had
previously been treated as exempt but should have been treated as
would not pursue tax under the misdirection class concession to the
extent that it had not been passed on to the customers (net of input
continues to receive registrations for VAT in which businesses
specifically request HMRC
not to pursue net tax due on supplies where VAT has not been passed on
From 1 August 2016 HMRC
will no longer routinely consider requests not to pursue the tax due.
Any request not to pursue net VAT due, where VAT has not been
charged on to customers, must be received by HMRC VAT
registration service on or before 31 July 2016. HMRC will only
consider requests that include complete and accurate calculations of
both output tax not charged on and the associated input tax and where
the VAT return (covering all supplies whether or not VAT has been
charged on) has been submitted.
This applies to all customers regardless of whether they are,
have been, or intend to apply to be registered for VAT.
Claims should be sent to:
Liable no Longer Liable Team
HM Revenues and Customs
77 Victoria Street
If your claim or registration relates to a specific Court
decision, please make that clear on the application.
For current guidance on the principles to be applied in cases
where a person believes that HMRC
is bound by advice which it has given, please refer to the notice When
you can rely on information or advice provided by HM Revenue &
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