Date Published: April 30th, 2019

How to Amend a VAT Return

Humans are prone to errors. We make lots of mistakes while preparing VAT returns which need to be amended as early as possible unless we have to face fines & penalties from HMRC in future.

We know that sometimes errors are made at the time of making VAT returns but you don’t have to panic as we offers you a unique accounting software named “Nomisma” which not only helps you in filing your VAT returns but also helps in amending the VAT returns too. With the help of Nomisma, you can easily safeguard yourself from a big financial penalty.

Making a VAT Correction

You can easily correct any VAT error, if the adjustment amount is below £10000. You can make your VAT correction at the time when you submit your next VAT return. you can do VAT correction by adding the “net value” to box 1 for any tax due to HMRC. In case you owed tax to HMRC, place the figure in box 4.

It is very important that you should maintain records of all your amendments you made to your VAT records. You should voluntarily tell HMRC about the error.

You have to maintain the following in your record and you have to keep a note of –

  • When you identified the error
  • Why the error was made
  • How much amount of VAT is involved
  • Period of VAT correction

If you are unsure and want some assistance, you can contact the VAT error correction team.

If HMRC feels that you have acted carelessly or dishonestly, you may have to penalty to HMRC regarding the same. The penalty ranges from –

  • In case you are careless, you will be charged penalty up to 30 percent from HMRC
  • In case it is a deliberate error, you will be charged penalty up to 70 percent from HMRC.
  • In case the error is both concealed as well as deliberate, you will be charged penalty up to 100 percent from HMRC.

Bigger VAT corrections

Bigger VAT corrections may leads to big fines & penalties. Therefore, it must be disclosed to HMRC on time. There are 3 situations in which you must disclose the details to HMRC, if the error –

  • Amount is more than £10000
  • Was caused deliberately
  • Is related to an accounting period which already ended 4 years ago.

In the above listed 3 situations, you have to fill form VAT652 or you may have to write a letter and sent it to –

HM Revenue and customs
VAT error correction team – SO864
New castle
NE98 1ZZ
United Kingdom

In response to your application, you will get a reply from HMRC telling you that whether your calculations are correct and how much money you owe to HMRC. In case you will not receive any mail from HMRC within 21 days, you must contact them yourself by calling 0300 200 3700. You must maintain record of errors you made at the time of making your VAT return and follow the process mentioned above to avoid the issue escalations.

If you are looking for VAT returns software, then Try Nomisma Solution with 14 days trial period and get your problem sorted. You can also call our experts at +44(0)20-3021 2326 or e-mail us at info@nomismasolution.co.uk

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