Error correction for VAT: Correction methods: Monetary limit for periods beginning on or after 1 July 2008
For errors discovered in prescribed accounting periods that begin on or after 1 July 2008 a person can adjust their VAT account and include the net value of the adjustment in the VAT return for the period in which the error was discovered if the net value of the errors does not exceed the greater of
- £10,000, or
- 1% of the box 6 figure required on the VAT return for the period of discovery, subject to an upper limit of £50,000.
For a practical example, see VAEC7190 Example 2.
Note: The legislation is covered in SI08/1482/Reg2 (1).