- HMRC updated VAT Notice 700/45 for correcting VAT errors and claiming refunds.
- Businesses are legally responsible for accurate VAT returns; penalties apply for uncorrected errors.
- Section 4 provides guidance on correcting errors and when to submit a formal notice.
- Section 6 outlines input tax claims and required documentation.
- Section 7 details handling of VAT underpayments and overpayments, including repayment timeframes.
- Section 9 clarifies unjust enrichment and the reimbursement scheme.
- Errors under £10,000 can be corrected on the next VAT Return; larger errors need formal correction.
- Failure to correct errors can result in penalties under Schedule 24 Finance Act 2007.
- Businesses must ensure refunds are passed on appropriately to avoid unjust enrichment.
- Updated sections align with HMRC’s penalty reform and compliance focus.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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