How to correct an error on a VAT return
Found a mistake on a VAT return already sent? Work out the net error, then see if it goes on the next return or to HMRC.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1Work out the net error2 questions
Mistakes are sometimes found after a return has been sent. They are put right, not left.
First work out the net error. Add up the VAT that is owed to HMRC, then take off the VAT that is owed to the business.
Ashby Joinery finds two mistakes in returns it has already sent. A sales invoice with VAT of £640 was left out. A purchase invoice with VAT of £150 was left out as well.
Task 2A small error goes on the next return4 questions
Task 3When HMRC must be told separately4 questions