Client has made an error on a VAT return, overstating VAT due by £900.
Usual practice would be to correct next quarter. But there was a surcharge for the quarter that was wrong, based on the VAT declared. Can we go back and correct the earlier return and hence reduce the surcharge?
EM
Replies (3)
Please login or register to join the discussion.
Penalty based on True Amount Of Tax
Years ago I recall that one or more VAT penalties were based on "the True Amount of Tax" (TAT).
My understanding is that the TAT is the VAT that was correctly due on the return concerned rather rthan the VAT actually accounted for on the return.
If this is one such penalty then I think it's worth writing a letter to HMRC stating that the TAT is less than the return figure by £900 and could the penalty be revised accordingly.
VAT Form 652
You should complete a VAT form 652 to declare the error. My understanding is, that if the net value of the error is under £2k they will expect you to make the adjustment in your current VAT return, rather than issuing a payment for the credit.
You can't, to my knowledge, go back and amend the submitted VAT return.