£10,000 VAT ERRORS

Businesses have long been allowed to correct net errors not exceeding £2,000 in their VAT returns. From the first new VAT period commencing on or after 1 July 2008, HMRC have raised the previous limit of £2,000 to a minimum figure of £10,000. 

Errors of more than £10,000 can also be put right on the return for businesses whose turnover for VAT purposes exceeds £1 million.

HMRC are in the process of updating their website to reflect this change.

Please do get in touch if you have any concerns in this area.

Internet Link: HMRC notes on VAT errors