2026-05-28 · MTD News
HMRC updates VAT assessments and error correction guidance
HMRC has updated its internal manual on VAT assessments and error correction. The guidance covers the issue, amendment, and withdrawal of VAT assessments, and is aimed at anyone who needs to understand how HMRC handles VAT errors — whether their own or HMRC's.
One notable pointer in the update: for the most current guidance on reasonable excuse — the test used when a taxpayer argues a penalty should not apply — HMRC directs readers to its separate CH160000 manual rather than this one.
For most small businesses and sole traders in East Kent, no immediate action is needed. However, if you are dealing with a VAT assessment, disputing a penalty, or correcting a past VAT error, it is worth checking this guidance to understand the process HMRC follows.
Source: gov.uk announcement.