VATF71000 - Due diligence and risk assessment: Introduction

Note: This manual is currently under review following Brexit. Some content may be withdrawn or revised during this process. If there is anything within this manual you use regularly, please email [email protected] to let us know. In the meantime, you should check the other guidance available on GOV.UK from HMRC.

When looking at the due diligence / risk assessment carried out by the taxable person you should determine and document:

• what due diligence / risk assessment checks were performed;
• what the results of the checks indicated;
• what purpose he believed the checks served;
• to what extent they were appropriate, adequate and timely in relation to addressing the risks identified; and
• whether the taxable person took appropriate action in response to the results of the checks (VATF74000).

Examples of the type of due diligence / risk assessment that could be undertaken and what the taxable person should do with the results are discussed in VATF73000 and VATF74000.