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V5.131 HMRC's powers to assess for VAT

HMRC is empowered to assess the amount due from a person and is required to notify such amount to him¹. Assessments made under VATA 1994, s 73(1) (failure to make returns, etc) and, before 1 January 2021, VATA 1994, s 75(1) (certain acquisitions by non-taxable persons) are made for 'the amount of VAT due'.

The 'amount of VAT due' does not include amounts recoverable by HMRC under VATA 1994, Sch 11, para 5(2), (3) (amounts shown on invoice purporting to be VAT) if it would not otherwise be VAT. Such amounts may be recoverable as a debt due to the Crown².

In a case concerning a taxpayer who was part of a conspiracy to defraud HMRC, sham invoices were issued both to and by him in respect of fictitious supplies of gold. When HMRC discovered the conspiracy it assessed the taxpayer under VATA 1983, Sch 7, para 4(1)³ in respect of the input tax wrongly credited to him. The taxpayer appealed