- HMRC has fully digitalized the VAT return correction process; the VAT652 form is no longer accepted.
- VAT return errors can now be corrected online, with specific thresholds for making corrections on the next return (£10,000 or less, or up to £50,000 if under 1% of sales).
- Corrections above these thresholds require amending the original return and providing a full explanation and preventive steps.
- Non-compliance may result in penalties; businesses unable to use the online system must submit detailed figures by post.
- The change aims to streamline VAT corrections, reduce paperwork, and improve transparency and efficiency.
Source: fintua.com
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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