VAT Error Correction

Form VAT652 (Error Correction) was withdrawn on 8 September 2025. The form was used to notify HMRC of VAT return errors that could not be corrected on the next VAT return. The procedure for correcting VAT return errors is now as follows:

If you have discovered an error in a VAT return, the first step is to check whether the error can be amended in the VAT return for the period in which the error was discovered. Errors can be amended in the next VAT return if:

·       The net errors, i.e. output VAT less input VAT errors, are less than £10,000; or

·       The net errors are between £10,000 and £50,000 and less than 1% of the Box 6 figure for the VAT return in which the correction is being made.

HMRC have published a new service that allows taxpayers to check whether they need to notify HMRC of any errors on the VAT return – see here.

If the errors cannot be amended on the VAT return, they must be disclosed using HMRC’s online error correction service – the service can be accessed using the above link and it requires signing in using a Government Gateway user ID and password.

Those who cannot use the online service should notify the error to HMRC's Error Correction Team by post (BT VAT, HMRC, BX9 1WR) or by email (inbox.btcnevaterrorcorrection@hmrc.gov.uk).

If the error was a result of careless behaviour, HMRC is still entitled to charge penalties in the event that they discover it at a later date, even if it has already been adjusted on the VAT return. HMRC advise that including the adjustment on the return does not constitute a disclosure. This means that without also notifying HMRC using the online error correction service, unprompted penalties could still be charged.