Correct errors on your VAT Returns

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You can make adjustments to correct errors that are:

  • below the reporting threshold
  • not deliberate
  • for an accounting period that ended less than 4 years ago

You must report any errors that do not meet these conditions to HM Revenue and Customs (HMRC).

If you’re correcting a payment error that fell within the VAT deferral period, you can choose to pay the difference at a later date. Find out if you’re eligible and how to defer extra payments.

Reporting threshold

You can adjust your next 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 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 cannot include them in this calculation.

How 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.

Or you can email form VAT652 to the VAT Error Correction Team.

You must:

  • keep details about the inaccuracy - for example 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 General Enquiries 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.