Correcting VAT errors

The relevant rules depend on whether you need to: Amend your VAT records if you discover they contain errors; Correct errors on VAT returns you’ve already sent to HMRC; Claim a refund if you’ve overpaid VAT, or not claimed enough credit on a return. When you find you have made an error or errors in a VAT return that has already been submitted to HMRC, there are 2 methods that may be used depending on the size of the error. An adjustment can be made on a current VAT return for a previous VAT return period if the net value of the errors does not exceed the greater of: £10,000, or 1% of the box 6 figure required on the VAT return for the period of discovery (subject to an upper limit of £50,000). Where the net value of the error is between £10,000 and £50,000 and exceeds 1% of the box 6 figure or where the net value of errors found on previous returns is greater than £50,000 then a notification must me made using the VAT652 form. This form must also be used for any deliberate errors on previous returns. <b>Planning note:</b> Subject to the above, if an error is discovered before you’ve submitted a VAT return then you can amend your records, but you must ensure that you keep a clear note to show the reason for the error in case it is questioned in the future. If you are uncertain how to deal with a past mistake on a return we can advise how best to deal with any necessary amendments or notifications.