VAT Underpayment

[kena1921]

Hi

I've discovered that earlier in the year I made a VAT underpayment. I can made the amendment on my next VAT return but my question is do I need to inform the revenue of this or can I just add this to the VAT return as if the item was in this quarter?

Many thanks

[Williams lester]

How much was it for?

[kena1921]

The VAT amount was £2100

[Ingrid]

As it is under £10k, there is no requirement to let HMRC know about it, just include it in your next return.

[David Griffiths]

There is no problem with simply making the correction on the next return.

But if you later have an HMRC inspection and they believe that the error was careless (or worse) you could still be liable to a penalty.

Penalties due to lack of care can be reduced to nil if there is a full and unprompted disclosure but simply correcting the error on the next return is not such a disclosure