VAT Surcharge Liability Notice Extension

VAT Surcharge Liability Notice Extension

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An transposition error was made on the submitted VAT return, and as a result VAT recoverable on purchases was understated by £200, so an underpayment arose (even though the client had in fact paid the correct amount). An error correction form has been sent to HMRC, however meanwhile a surcharge liability notice was received by the client (19 days after the date shown on the letter) and due to August holidays etc, 30 days have now passed. I note that on the HMRC letter there is no mention of the 30 days to appeal (just that if you do not agree with the notice to write to HMRC), however looking at the relevant HMRC notice 700/50 it says that the time limit is 30 days to ask them to review the notice.

Qu 1. Would the surcharge liability notice usually be cancelled if the underpayment has only arisen due to an error in submitting the VAT return?

Qu 2. Is the 30 days flexible?

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chips_at_mattersey
By Les Howard
15th Sep 2015 17:19

Surcharge Liability Notice

Technically,  you cannot appeal against an SLN, unless there is a surcharge. However, you should write to explain the circumstances.

Should a surcharge arise on a later Return, you can then raise these events as part of your 'reasonable excuse' defence,

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