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VAT assessment—time limits

The time limits for making an assessment are described below by reference to the statutory provisions under which they are made. For the conduct giving rise to assessments under these provisions, see V5.132.

The three-year limit was raised to four years with effect from 1 April 2009. Assessments must now be made not more than one, two, four or 20 years after the end of the prescribed accounting period or the occurrence of some specified event. This period is counted by excluding the day on which the prescribed accounting period ends or the event occurs¹.

No time limit for reduction of VAT repayment claim

Since HMRC has powers only to raise an assessment in respect of VAT due from a taxpayer, it follows that it has no power to assess in respect of an incorrect claim for repayment². In such cases, HMRC's approach will be to refuse to make repayment (or to limit repayment to the amount it considers to be