Correcting VAT Returns with the Help of a Tax Accountant, London

Everyone makes mistakes from time to time, and if errors appear in your data, even significant documents like your VAT return may be impacted. It is your duty as a VAT-registered company to fix any errors, even if they weren’t your fault. Fortunately, changing your VAT return is not too difficult to accomplish.

A tax accountant London, can help you understand the VAT rules better, minimise deductions, save money, and ensure effective financial management

How can I correct errors on my VAT return?

Errors on your VAT return can typically be fixed by adding an adjustment to your subsequent return; however, this relies on the error’s “net value” and whether it was intentional or not.

By consulting an expert accountant, London, you can seek assistance for the correction process of errors in VAT returns. They can determine the “net value” to understand if it was intentional errors and make adjustments accordingly in the VAT returns.

What is the error’s net value?

The net value of the error can be calculated by deducting the VAT owed to you and adding the additional VAT that is still owed to HMRC.

Who is able to make a VAT adjustment to fix a mistake on a VAT return?

If there is a mistake in your VAT return, you can fix it by  adding an adjustment to your subsequent return, provided the error’s net amount is:  

  • GBP10,000 or less
  • From GBP 10,000 to GB

Should I be unable to adjust for VAT, what should I do

If the net value of the inaccuracy in your VAT return is: You must use a VAT652 Form to report errors to HMRC.

  • Over GBP 50,000
  • More than GBP 10,000 and exceeds 1% of the total value of your sales
  • The outcome of a purposeful mistake 

The role of an accountant London is essential when you need to make adjustments for tax errors, especially when net error amount is within the range- GBP 10000 or less. Accountants ensure compliance and financial accuracy.

What Comes Next?

Once you report the specifics of any VAT return errors, HMRC will figure out if that implies you previously claimed too much VAT back or did not pay enough. Should one of these scenarios apply, you may be required to pay interest on the outstanding balance.HMRC does not expect taxpayers to get it correct each time, although making repeated mistakes may result in a penalty.

A tax accountant, London, can offer guidance on the post-requirements of reporting VAT-return errors. They assist with HMRC assessments and check for under/over payment that leads to interest fees. Further, they ensure compliance and minimise the chances of penalties for repeated errors


The worry that accompanies filing your VAT return every three months is something that anyone in charge of filing VAT returns will comprehend. If you do make a mistake, you should not panic and should instead take the necessary steps to fix the problem in order to avoid facing a significant financial penalty.

If there are careless or intentional errors or inaccuracies regarding return periods, there will be a penalty. When someone finds a non-careless error, HMRC expects that they will take action to fix it. If they don’t, the error will be deemed careless and a penalty will be imposed.You can seek guidance from a skilled tax accountant, London, who can offer professional tax advice on any area of VAT reporting or error rectification, or if you would like assurance that you are abiding by HMRC’s VAT regulations.

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