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.
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