³ÉÈËÓ°Òô

Best judgement


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Best judgement


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

HMRC is expected to use its 'best judgement' when making a decision to raise an assessment and this guidance note provides an overview of the principals that need to be followed. Please see the Assessments guidance note for more information on assessments.

For more in depth commentary, see De Voil Indirect Tax Service V5.132C.

What is best judgement?

HMRC is required to use raise assessments for VAT using its ‘best judgement’. However, the burden falls on the business to prove that HMRC has not issued an assessment using its best judgement.

The principles regarding what constitutes best judgement are taken from a High Court decision in Van Boeckel where the following benchmark was established.

HMRC:

  1. •

    is not required to do the work of the taxpayer

  2. •

    must perform its duties honestly and above board

  3. •

    must fairly consider all material put before it and based on that material make a decision that is reasonable and not arbitrary

  4. •

    must be in possession of some material upon which it can base its best judgement

Van

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 14 Sep 2022 10:50

Home/ Tolley Tax Guidance/ Value Added Tax / Errors, assessments and adjustments

Popular Articles

Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more Read more
tag-icon Brexit
Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2024