HMRC has issued new guidance on reporting errors in previous VAT returns where the amount in question exceeds the reporting threshold and, as a result, HMRC must be notified. The guidance links through to a new online service which businesses can use to check whether the error can be dealt with by making an adjustment in the VAT return, or whether they need to notify the error separately using form VAT652 (either online or by completing the printable form).
Errors can generally be adjusted in a VAT return where the net value of any errors is either (a) less than £10,000, or (b) between £10,000 and £50,000 and does not exceed 1% of the total output tax due on the VAT return in the period in which the error was discovered.
HMRC has issued new guidance on reporting errors in previous VAT returns where the amount in question exceeds the reporting threshold and, as a result, HMRC must be notified. The guidance links through to a new online service which businesses can use to check whether the error can be dealt with by making an adjustment in the VAT return, or whether they need to notify the error separately using form VAT652 (either online or by completing the printable form).
Errors can generally be adjusted in a VAT return where the net value of any errors is either (a) less than £10,000, or (b) between £10,000 and £50,000 and does not exceed 1% of the total output tax due on the VAT return in the period in which the error was discovered.
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