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HMRC internal manual

VAT Assessments and Error Correction

HM Revenue & Customs
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Error correction for VAT returns: Interest and penalties: Deliberate inaccuracies

Deliberate inaccuracies in previously submitted returns cannot be adjusted in a later VAT return. They are known from the outset and therefore cannot be ‘discovered’.

A person should make a separate disclosure to HMRC of any deliberate inaccuracies in previously submitted VAT returns. See VAEC7120 for guidance on making separate notifications.

Form VAT652 can be used for this purpose. It will be an unprompted or prompted disclosure depending upon the circumstances. See CH82420 for further guidance on what constitutes an unprompted and prompted disclosure.

The time limit for correcting deliberate inaccuracies in previously submitted VAT returns mirrors the time limit within which HMRC can assess under-declared or over-claimed VAT resulting from deliberate inaccuracies.

This means that disclosures can be made in respect of VAT returns submitted for the previous 20 years. See VAEC2000 for guidance on assessing time limits.

The legislation that supports deliberate inaccuracies is

SI 1995/2518/Reg34