Hmrc Vat Error Disclosure
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adjust your current VAT account to correct errors on past returns if they’re: below the reporting threshold not deliberate for an accounting vat error correction time limits period that ended less than 4 years ago You must report any vat overpayment refund errors that don’t meet these conditions to HM Revenue and Customs (HMRC). Reporting threshold You can adjust your next how to correct vat errors and make adjustments VAT Return if the net value of the errors is £10,000 or less. You can also adjust your next VAT Return if your error amount is up to 1% of your vat652 paper form box 6 figure (up to a maximum of £50,000). You must report the error to HMRC if it’s above the reporting threshold. Calculate the net value To work out the net value of the errors: add up the additional tax due to HMRC subtract the tax you’re due You must report deliberate errors separately - you can’t include them in this calculation. How
Vat Return Box 6
to make the adjustment When you submit your next return, add the net value to box 1 for tax due to HMRC, or to box 4 for tax due to you. You must: keep details about the inaccuracy - eg the date it was discovered, how it happened, the amount of VAT involved include the value of the inaccuracy in your VAT account HMRC has detailed guidance on correcting your VAT Return. Contact the VAT Error Correction Team if you need help making corrections. HMRC may charge you penalties and interest if an error is due to careless or dishonest behaviour. You should tell HMRC about careless errors separately in writing, as well as adjusting your current VAT Return. This may lead to a reduction in the penalty. Next Errors you must report Print entire guide Last updated: 23 September 2016 VAT Log in to use VAT online services Pay your VAT bill VAT Returns VAT repayments VAT record keeping More in VAT Return to top ↑ Help us improve GOV.UK Don’t include personal or financial information, eg your National Insurance number or credit card details. Wha
You must report (disclose) the following types of inaccuracies - you can’t make an adjustment to your
Overpaid Vat
VAT Return to correct them: an error above the reporting threshold a vat adjustment on import entry deliberate error - eg a mistake you made on purpose an error made in an accounting period that notice 700/43 default interest ended more than 4 years ago How to report the error Fill in form VAT652 and send it to the VAT Error Correction Team. You can send a letter instead https://www.gov.uk/vat-corrections/adjustments and include the information requested in form VAT652 if you prefer. HMRC will then send you a notice telling you if the amount you calculated is correct and any interest or tax you owe. You’ll also get a statement showing your current balance. Contact the VAT Error Correction Team to make sure HMRC have received your correction if you https://www.gov.uk/vat-corrections/report-error don’t hear from them within 21 days. Previous Adjustments Print entire guide Last updated: 23 September 2016 VAT Log in to use VAT online services Pay your VAT bill VAT Returns VAT repayments VAT record keeping More in VAT Return to top ↑ Help us improve GOV.UK Don’t include personal or financial information, eg your National Insurance number or credit card details. What you were doing What went wrong Send Services and information Benefits Births, deaths, marriages and care Business and self-employed Childcare and parenting Citizenship and living in the UK Crime, justice and the law Disabled people Driving and transport Education and learning Employing people Environment and countryside Housing and local services Money and tax Passports, travel and living abroad Visas and immigration Working, jobs and pensions Departments and policy How government works Departments Worldwide Policies Publications Announcements Support links Help Cookies Contact Terms and conditions Rhestr o Wasanaethau Cymraeg Built by the Government Digital Service Open Government Licence All content is available under the Open Government Licence v3.0, except where otherwise stated © Crown copyright
adjustments or claims Updated 23 July 2015 Contents Foreword 1. Introduction 2. Errors found in records 3. Errors on invoices 4. Correcting VAT errors on https://www.gov.uk/government/publications/vat-notice-70045-how-to-correct-vat-errors-and-make-adjustments-or-claims/vat-notice-70045-how-to-correct-vat-errors-and-make-adjustments-or-claims a return already submitted 5. How to claim a refund 6. What if I haven’t claimed enough input tax on previous returns 7. Correction of errors under paragraph 4.4 8. What to do if you disagree with a decision or ruling 9. Unjust enrichment and the reimbursement scheme 10. Undertaking for the reimbursement scheme Your rights and obligations Do you have any comments or vat error suggestions? Putting things right How we use your information Foreword This notice cancels and replaces Notice 700/45 (July 2015). 1. Introduction 1.1 What is this notice about? This notice explains how to: amend your VAT records if you discover they contain errors correct errors you discover on VAT returns you’ve already sent to us claim a refund if you’ve overpaid VAT, or not claimed enough hmrc vat error credit on a return complete your VAT returns or make a claim if you disagree either with our decision on the VAT treatment of a supply complete your VAT returns where our practices in relation to VAT are being challenged in the Court If you find an error in accounting for VAT that is not covered by this notice, you should contact the VAT Helpline on Telephone: 0300 200 3700. 1.2 What help can you give me in getting my VAT returns right first time? VAT errors can prove costly to you and to us. Failure to correct errors can result in a penalty and interest. For more on this see section 4. Reading this notice can help you avoid errors. This notice explains how you can correct them if they do occur. 2. Errors found in records 2.1 What if I find errors in my VAT records? Where you find that your VAT records contain errors, you will need to correct them. Paragraph 2.2 explains how you can do that. This guidance only applies to declarations of UK VAT and doesn’t apply to VAT MOSS returns, as these contain dec