News
June 2008
Voluntary Disclosure Correction of Errors
The existing £2,000 de minimis limit for notifying errors in writing to HMRC is increased from 1 July 2008.
Currently, any net
errors arising in a VAT accounting period may be corrected
on the next VAT return provided the net errors do not exceed £2,000. Above
this limit, the error must be notified in writing to HMRC.
This new measure increases the £2,000 threshold to
the greater of £10,000 or 1% of turnover (the Box 6
figure on the VAT return for the period concerned), subject
to an upper limit of £50,000. This measure takes effect
from 1 July 2008.
This measure is very welcome as the existing limit of £2,000
is extremely low for businesses with large turnovers - this
will decrease their administrative burden considerably as
many more errors can simply be adjusted on the next VAT return.
Indeed, this measure received support as
part of the consultation process concerning revision to the
de minimis limit which closed in October last year.
