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| HMRC Warns of Delays in Correcting VAT Errors |
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HM Revenue & Customs has warned that there is currently a delay of between six and eight weeks, when they are notified of an error in a VAT Return by a business, and have to correct the mistake. HM Revenue & Customs has pointed out that, in some cases, (generally for 'smaller' errors), the business is able itself to correct the errors on its next VAT return - i.e., make a corresponding adjustment in the next VAT return instead of asking HM Revenue & Customs to process the correction separately. Apparently, many of the cases notified to them for correction could instead have been dealt with directly by the business, in this way. However, it is important to be aware of the possible consequences of not notifying HM Revenue & Customs when a business corrects its own VAT returns, under the new penalty regime: penalties can be higher when you don't 'tell' HM Revenue & Customs about a mistake. So on balance it is likely that HM Revenue & Customs will still receive significant amounts of corrrespondence relating to errors, even when it doesn't need to make any corrections because they've already been adjusted through the VAT return. Links Correcting Mistakes Made on Earlier VAT Returns What to Do if You Made a Mistake on an Earlier VAT Return
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Tuesday, 24 August 2010 | 1064 Hits |
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