VAT errors- HMRC online reporting launched
HMRC has introduced a new digital form so that a company can quickly and easily report VAT errors made on earlier VAT return submissions. What does this indicate for your business?
Disclosing past VAT errors
The new online form is now HMRC’s preferred option for disclosure of past VAT errors because it will flag up potential errors and therefore reduce processing delays. For example, the system will validate VAT numbers in real time and prevent potentially out of time corrections being included.
You can now add supporting documents, including purchase invoices, to save processing times even more. If, for instance, you were claiming additional input tax, this would be helpful. You may also save a partially finished form and come back to it later. These updates should help you streamline your administration and save time, according to HMRC.
How far can I go back to fix VAT errors?
Keep in mind that if a VAT issue is more than four years old, it is too late to fix it. You cannot amend problems on your September 2018 return or any previous period, for instance, if you submit your calendar quarter returns on 12 November 2022.
Can I still fix VAT errors by post?
You can still send a paper Form VAT652 to HMRC to report and fix your past VAT errors if, for any reason, you feel uneasy filling out online forms. The processing time for a paper form will be longer, which is bad news if your error correction is for a VAT rebate.
Technical issues for online reporting of VAT errors
You do not require Adobe Reader to be installed on your computer in order to use the print and mail form, according to HMRC. You can log in using your Government Gateway account or by confirming your email address. In addition, there are now five additional options for error descriptions on the digital form, plus one for “other,” which will provide HMRC with more details about the type of error(s) you have made and allow it to ask you fewer follow-up questions.
When you have submitted the form, you will get a reference number to confirm it has been received; this ends the “lost in the post” risk! Include your contact details in the box on the form to permit queries.
Tip for reporting VAT errors
Because the built-in checks will decrease the likelihood of error and accelerate processing, select the online form as the default choice. Include your phone number and email address so HMRC can reach you if they have any questions.
Our service to you
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.
Get further information from the following pages;
Get further information from the following blogs;
HMRC to relaunch VAT Registration Service (VRS)
VAT on commissions and referral fees
Bad debt VAT relief and VAT compliance