HMRC Guidance: Guidance Check how to tell HMRC about VAT Return errors

• Correction Eligibility: You can correct errors from the previous four years if the net value is £10,000 or less, or between £10,000 and £50,000 but less than 1% of your total sales. For these, adjustments can be made in your next VAT Return.
• Reporting Significant Errors: You must report errors separately if they exceed £50,000, are over £10,000 and exceed 1% of total sales, or are deliberate errors.
• Adjustment Process: To adjust your next VAT Return, add the net value of the error to Box 1 (tax due to HMRC) or Box 4 (tax due to you). Keep detailed records of the error, including when it was discovered, how it occurred, and the VAT amount involved.

Source HMRC

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HMRC Adopts Digital System for VAT Error Reporting, Replacing Traditional Form VAT652

• HMRC has made digital notification the standard for reporting most VAT return errors, replacing form VAT652 with an online system.
• Errors can be adjusted in the next VAT return if under £10,000 or between £10,000 and £50,000 and less than 1% of total sales.
• Errors exceeding these thresholds must be reported directly to HMRC.
• Businesses can correct errors online using Government Gateway credentials, and agents can submit corrections for clients.
• Digitally exempt businesses can notify HMRC about errors in writing by post or email.

Source: icaew.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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