TC09553 - [2025] UKFTT 00705 (TC)

Fecha: 12-Jun-2025

The legislation relevant to the assessing time limit

The legislation relevant to the assessing time limit

38.

HMRC accept that this is not a situation where extended time limits can be relied upon. Therefore, the relevant time limits are set out in Sections 73 and 77 VATA 1994. The relevant parts of these sections provide:

73 Failure to make returns etc.

(1)

Where a person has failed to make any returns required under this Act (or under any provision repealed by this Act) or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Commissioners that such returns are incomplete or incorrect, they may assess the amount of VAT due from him to the best of their judgment and notify it to him.

…

(6)

An assessment under subsection (1), (2) or (3) above of an amount of VAT due for any prescribed accounting period must be made within the time limits provided for in Section 77 and shall not be made after the later of the following—

(a)

2 years after the end of the prescribed accounting period; or

(b)

one year after evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,

but (subject to that section) where further such evidence comes to the Commissioners' knowledge after the making of an assessment under subsection (1), (2) or (3) above, another assessment may be made under that subsection, in addition to any earlier assessment.

77 Assessments: time limits and supplementary assessments.

(1)

Subject to the following provisions of this section, an assessment under Section 73 or 76, shall not be made—

(a)

more than 4 years after the end of the prescribed accounting period or importation concerned,

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