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Can I make adjustments to my VAT return after submitting it?

  • Updated

If you see the 'locked' icon alongside a transaction, it means that you have already submitted it as a part of a previous VAT return. You cannot make adjustments to a 'locked' transaction but you will be able to make adjustments to your next VAT return by pressing the 'Adjust' button in the 'Preview VAT return' screen.

 

Please refer to the HMRC website for further guidance: https://www.gov.uk/guidance/how-to-correct-vat-errors-and-make-adjustments-or-claims-vat-notice-70045 

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Press the 'Include Historic' button on the VAT Return Preview page to include historic tax entries that haven't been closed in any prior period:

 

If you have mistakenly submitted a VAT return to HMRC with incorrect transactions included, here’s what you can do to correct the situation:

Step 1: Check the Submitted Return

  • Review the submitted VAT return to identify exactly what was incorrect (e.g., the duplicate transactions included from a previous period).

Step 2: Adjust in the Next VAT Return

  • If the error results in an overpayment or underpayment, HMRC typically allows minor corrections to be included in the next VAT return. The threshold for corrections is:
    • Net errors of £10,000 or less.
    • Net errors between £10,000 and £50,000, as long as they are less than 1% of the box 6 figure on your VAT return.
  • For errors exceeding these thresholds, a different approach is required (see Step 3).

Step 3: Notify HMRC Directly

  • If the error is significant or exceeds the thresholds for adjustments:
    • Submit Form VAT652: This is the form for notifying HMRC about errors on previously submitted VAT returns. It can be sent online, by post, or through your accountant.
    • Include details of the error, the period it relates to, and any adjustments made to correct it.

Step 4: Contact HMRC

  • Call the VAT helpline at 0300 200 3700 to inform them about the mistake and get specific advice on how to handle it based on your circumstances.

Step 5: Adjust Future Returns in Your Software

  • In Business Finance Assistant, ensure that the settings are correct for future VAT submissions to prevent this issue:
    • Choose 'This period only' for future VAT submissions to avoid including historic transactions.

Records to Keep

  • Maintain records of the original return, the error, and the correction. This is crucial if HMRC audits your VAT returns in the future.

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