HMRC have summarised many of the VAT related issues reported by tax.point over the last year in VAT Note No 3 2008.

Among the items summarised in this note are:

• details of the new penalty system for tax errors;
• the imposition of default interest on net errors of less than £2,000;
• clarification of HMRC's position in respect of retrospective claims for input tax from Higher Education Institutions operating a partial exemption method;
• details of guidelines for set-off where right to claim overdeclared tax is transferred.

Full details are available at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1 &id=HMCE_PROD1_028907