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Errors on prior VAT returns

Errors on prior VAT returns

Client has missed £1,000 of VAT from the last 4 VAT returns.  Does the facility to amend the next return to include the missed VAT only cover the latest return (as in, can I only correct £1,000 on the next return) or can it be errors from multiple returns (i.e. £4,000)?

Also, can you confirm your understanding of a further point.  I am led to believe that doing the above does not constitute a disclosure, so HMRC could later say 'hang on, we've spotted errors of £4,000' and declare it unprompted?  That seems to be the strict rule, but is it actually enforced like that?  Basically, do I need to include the £4,000 AND do a seperate disclosure to HMRC (which seems to make the amending of the next return a pointless exercise)?


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26th Apr 2012 11:37

My thinking...

I believe that you can correct errors up to £10,000 on the next VAT return so I think you could just correct the full £4000 next time.

I also believe that you're right that this is not a disclosure. I think you should write a letter to HMRC to say that you have spotted these errors detailing when they occured and reason etc and then say that they have now been corrected on the VAT return for the period ...

By doing this I think it means you have made a full disclosure for penalty purposes so if HMRC decided to try and penalise you for errors then you could reduce penalties to zero by having made an umprompted disclosure.

I could be wrong as I've not seen them appl y the new penalties for VAT as yet.

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26th Apr 2012 15:40

HMRC page on correcting errors on previous VAT returns



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By BMary83
26th Apr 2012 19:03

Related question

I've met with a potential new client who has advised me that despite giving all their info to their current accountant, the accountant has only submitted  estimated VAT returns.  While I am questioning why they submitted "estimated" returns, I am questioning my action here should I take them on as a client.  Should I re-do the returns then voluntarily disclose this?


Also, I didn't think you could submit estimated VAT returns at all? 

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