Business News

September 2010

Helping Hand On VAT Errors

HM Revenue & Customs (HMRC) has issued new guidance on correcting VAT errors.

HMRC says it has found that many mistakes reported to its Error Correction Team could have been corrected by customers and that as there is currently a six to eight-week delay in processing corrections, it makes sense for customers to correct errors themselves if possible.

The guidance, contained in a notice issued in July, cancels and replaces Notice 700/45 dating from July 2009 and includes advice on how to:

• amend VAT records if errors are discovered
• correct errors discovered on VAT returns already sent to HMRC
• claim a refund if VAT has been overpaid or not enough credit has been claimed on a return
• complete VAT returns or make a claim if there is disagreement with an HMRC decision on the VAT treatment of a supply.

LINKS: Correcting VAT errors