VAT Rules for Reporting Errors in Returns Tightened Up

[numbersrule]

I understand the rules relating to reporting errors in VAT Returns changed back in September.

It seems that admitting to careless errors can now be more advantageous in that the penalty can be reduced to zero when reported.

Whereas if HMRC discover an unreported careless error then penalties may be more stringent.

Do any forum posters know anything about this change?

The information online is not clear, but I have read that errors should now be reported irrespective of the amount, whereas previously it was only errors over £10k that needed reporting.

Is this correct?

 

[Ziggy2024]

I also read that and it seemed to suggest (to me anyway) that you were always supposed to do it, which was news to me.

I recently had to amend a return which was under the £10k limit. There is a checklist on HMRC which tells you whether you need to inform HMRC and it told me to just amend the next return. I kept a copy of that on file in case they ever do investigate.

I fail to see why HMRC keeps asking for more information when they can't keep up with what they are receiving now.