- HMRC has replaced form VAT652 with an online VAT error correction system for greater efficiency.
- Errors under £10,000, or between £10,000 and £50,000 (if less than 1% of sales), can be corrected in the next VAT return; larger errors must be reported directly to HMRC.
- Businesses use Government Gateway credentials for online corrections; agents can also submit on behalf of clients.
- VAT-exempt businesses may notify errors by post or email, providing detailed information about the error and adjustments.
- Adjusting errors in a VAT return does not count as formal notification for penalty reduction if HMRC considers the error careless.
Source: fiscal-requirements.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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