Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Correcting VAT Errors

I run a small retail busines and have underdeclared my sales and purchase for my last 3 VAT return periods. How do I correct the errors?

Currently there are two ways in which you can notify of any VAT errors arising in VAT accounting period.

You can disclose the error by adjusting your VAT account and including the value of that adjustment in the next VAT return. From 1 July 2008, the previous net errors threshold of £2,000 has been increased to the greater of £10,000 or 1% of the turnover (box 6 figure on the VAT return) subject to an upper limit of £50,000.

If the net errors total more than £10,000, you must inform your local VAT Business Advice Centre in writing of the errors. If you use this method, you must not make adjustment for the same errors on a later VAT return. HM Revenue & Customs may also charge interest on any under declarations you disclose in this way.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us