HMRC Takes Another Step Toward Full Digitalisation with VAT Error Corrections Now Fully Online
HMRC has introduced a new Online VAT Error Correction service, meaning all VAT error disclosures must now be made digitally through your Government Gateway VAT account.
What’s changed?
Previously, UK VAT error corrections could be submitted using form VAT 652 either by email, post, or using the online VAT form 652.
All of these routes have now been replaced by a single, digital-only service. The new system is designed to make the process quicker, more efficient, and to provide immediate acknowledgment once an error correction has been submitted.
What stays the same?
The rules for correcting UK VAT errors remain unchanged:
- Errors under £10,000, or between £10,000 and £50,000 (if less than 1% of Box 6 on your VAT return), can still be corrected on your next return.
- Larger or deliberate errors must be reported separately using the new online system.
- The four-year time limit for correcting VAT errors still applies.
How to use the new service
- Log in to your Government Gateway VAT account.
- Select “Correct errors in your VAT return.”
- Enter details of the VAT periods affected, describe the error, and upload supporting documents.
- Submit the correction online. HMRC will issue an acknowledgment once received.
If you’re exempt from digital filing or unable to access the online service, you can still notify HMRC in writing, but the expectation is that most businesses will now use the digital route.
Why it matters
The move to a single online process is part of HMRC’s wider digital transformation. While the submission method has changed, the importance of prompt and accurate error correction remains.
Remember, adjusting an error on your next VAT return may not qualify as a full disclosure if the mistake was careless. Using the new online service ensures proper notification and can help minimise potential penalties.
Need help correcting a VAT error?
Our VAT specialists can guide you through the new online process, ensure your disclosure is complete, and help you minimise risk.
Contact us today for further information or assistance with UK VAT error corrections.