August 19, 2010

VAT Errors 2

HMRC have at last increased the ridiculously low threshold at which you have to notify them of a VAT error, currently £2000.

With effect from 01 July 2008 adjustments of £10,000 or 1% of quarterly turnover can now be made on the VAT Return without having to consult HMRC.

This is subject to a maximum of £50,000.

Adjustments exceeding this value must still be made on a VAT 652 (Voluntary Disclosure of Errors) and of course get the adjustment wrong and there are penalties.

Elysian Associates
May 2008

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