Running a business:
Correcting errors
If errors on your VAT return are discovered by VAT officers, for example following a VAT visit, you may be charged interest and penalties.
If you discover an error yourself, and take steps to correct it, you may be charged interest but should avoid penalties.
If the error is for £2,000 or less, you can make the adjustment on your current VAT return.
For larger errors you do not adjust your VAT return but instead write to your local VAT office setting out full details of the error including:
- how the error arose;
- the VAT accounting period in which it occurred;
- if it was an input tax or output tax error;
- the VAT under-declared or over-declared in each period, and how you calculated it;
- whether any of the errors resulted in an overpayment; and
- the total amount to be adjusted.
You can also write instead of amending your VAT return for errors of £2,000 or less
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Where next?
Within VAT ...
- What is VAT?
- Should I be registered for VAT?
- Should I register for a VAT accounting scheme?
- VAT records
- Tax point
- Why you need to pay your VAT on time
- Entertaining and travel expenses
- Bad debt relief and late payers
- Partial exemption
- Group and divisional registration
- Land and buildings
- When might I have to repay input VAT?
Within Running a business ...
- Accounting systems
- Financial information
- Your business premises
- Remuneration
- Business risks
- PAYE
- Business taxes
General ...
