If you find an error in an earlier VAT return, you can normally correct it by including the net effect in your latest return.
This assumes that the error is not more than the greater of:
b) 1% of the Box 6 figure (total sales ex. VAT) on your VAT return for the period that you discover the error, subject to an upper limit of £50,000
Please retain your VAT workings showing the amount of the error.
To avoid a possible penalty, you also need to report certain errors to the VAT Error Correction Team using form VAT 652.
A copy of this form can be found by clicking on the link here.
Please contact us if you need help correcting past VAT errors; we will be happy to help.