VAT Underpayment

kena1921 · Jul 31, 2010

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 · Jul 31, 2010

How much was it for?

kena1921 · Jul 31, 2010

The VAT amount was £2100

Ingrid · Jul 31, 2010

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

David Griffiths · Aug 1, 2010

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

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VAT Underpayment

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