Starting a new business? Get 40% off our accountancy services for 3 months! 😀


As with all things in life, errors can crop up in your VAT records – especially if you’re busy running your own business. Unfortunately, it’s your responsibility to correct any mistakes, even if they weren’t your fault.

How do I correct mistakes in my VAT return?

You can normally correct VAT return errors by making an adjustment in your next return, depending on how the net value of the error, and whether or not it was deliberate. Work out the net value of the error by adding up the additional VAT due to HMRC, then subtracting the VAT due to you.


You can simply make an adjustment in your next VAT return as long as the net value of the error is… You must use a VAT652 form to tell HMRC about errors if they are…
  • £10,000 or less
  • Between £10,000 and £50,000, but less than 1% of the total value of your sales
  • More than £50,000
  • More than £10,000, if they exceed 1% of the total value of sales
  • Deliberate errors


Comprehensive VAT return service

From only £25.00 per month

Learn more


What will happen next?

Once you report the details of any VAT return errors, HMRC will work out if this means you previously claimed too much VAT back, or simply didn’t pay enough. If either of these is the case, you might need to pay interest on the amount that you owe.

HMRC don’t expect people to get it right every time, though making frequent errors may result in a penalty.

Learn more about our online accounting services. Call the team on 020 3355 4047, or get an instant quote online.

About The Author

Beth-Anne Bruce

I'm an experienced and fully AAT and ACCA qualified accountant, who is enthusiastic about helping business owners succeed. I also love cooking and needlepoint (at different times!). Learn more about Beth.

More posts by this author
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.