Hi I have submitted my VAT wrong what shall i do
I have noticed after submitting it that there is a sales fiquire wrong
i done a estamate Invoice by error that was then converted to a sales Invoice but for some reason it is showing £839.31 that i have to pay sales Vat this is wrong
the Invoice is for work abroad and NO vat is due on it
The invoice that was paid shows No vat on it
How can i correct it
I found multiple VAT errors in a company I recently purchased.
VAT errors are time barred after four years.
I asked Perplexity and got and follow the advice:
If you have overpaid VAT in the last couple of years, you can claim it back from HMRC, but the process depends on your VAT registration status and the nature of the overpayment.
For VAT-Registered Businesses
-
Correcting the Overpayment via VAT Return:
If you are VAT-registered and have made an overpayment, you should generally adjust your next VAT return to correct the error. You can amend your VAT records and returns for errors made in the last four years[3][4][5].- For net errors up to £10,000 (or up to £50,000 if this is less than 1% of your sales), you can simply adjust your next VAT return[5].
- For larger errors or deliberate mistakes, you must notify HMRC directly, typically using form VAT652 or through the VAT Error Correction Team[4][5].
-
Documentation Required:
Keep a clear audit trail, including VAT invoices, payment evidence, and details of the overpayment, to support your claim[4][5].
If HMRC requests further information, be prepared to provide supporting documents. -
Time Limits:
You can generally correct VAT errors and reclaim overpayments made within the last four years[4][5]. For import VAT, the claim period is three years from the import date[2].
For Non-VAT-Registered Individuals or Businesses
- Claiming Overpaid Import VAT:
If you are not VAT-registered and have overpaid import VAT, you must use HMRC’s C285 form or the relevant online service, depending on how your import declaration was made[1].- You will need your movement reference number (MRN), EORI number (if applicable), commercial invoices, transport documents, and bank details[1].
Additional Points
-
Unjust Enrichment:
HMRC will not refund VAT if doing so would result in “unjust enrichment”-for example, if you passed the VAT cost to your customer and do not intend to reimburse them[3]. -
Bad Debt Relief:
If your overpayment relates to bad debts, you may be able to reclaim VAT on these through your VAT return, provided the debt meets HMRC’s criteria (e.g., debt is over six months old and written off in your accounts)[5]. -
Professional Advice:
If you are unsure about the process or eligibility, consider consulting a tax adviser or contacting HMRC for guidance[2][4][5].
Step-by-Step Summary
- Identify and document the overpayment (invoices, returns, payment records).
- Determine if you can adjust your next VAT return (for most errors under £10,000 or under £50,000 if less than 1% of turnover).
- For larger or deliberate errors, complete VAT652 and send it to HMRC’s VAT Error Correction Team with supporting documents.
- For import VAT and non-VAT-registered claims, use form C285 or the relevant online service.
- Keep all documentation for your records and in case HMRC requests further evidence.
- Wait for HMRC’s review and refund or explanation if your claim is rejected.
By following these steps and ensuring your claim is within the allowed time limits, you can reclaim overpaid VAT from HMRC[1][3][4][5].
Sources
[1] How to claim a repayment of import duty and VAT if you’ve overpaid How to claim a repayment of import duty and VAT if you've overpaid - GOV.UK
[2] Have you overpaid VAT on imports? Reclaim before 1st January 2024 Have you overpaid VAT on imports? | PKF
[3] How to correct VAT errors and make adjustments or claims (VAT … How to correct VAT errors and make adjustments or claims (VAT Notice 700/45) - GOV.UK
[4] How to claim back VAT: a step-by-step guide - Iwoca How to claim back VAT: a step-by-step guide - iwoca
[5] How to Reclaim VAT: Overpayment, Bad Debt, & New Build {2024} How to Reclaim VAT: Overpayment, Bad Debt, & New Build {2024}
[6] Double paid VAT return - how to get refund? - AccountingWEB https://www.accountingweb.co.uk/any-answers/double-paid-vat-return-how-to-get-refund
[7] VAT repayments - GOV.UK VAT repayments: Overview - GOV.UK
[8] VAT refunds: claiming online - Your Europe - European Union VAT refunds: claiming online - Your Europe
[9] Guidance on repayment claims for overstated or overpaid VAT … https://www.tolley.co.uk/tax/guidance/vat-repayments-overstated-or-overpaid-output-tax
[10] VAT refund - Community Forum - GOV.UK https://community.hmrc.gov.uk/customerforums/vat/a4e7bcf9-22da-ee11-a81c-002248001e4f
[11] How to handle overpayment of VAT - Accountancy Age How to handle overpayment of VAT - Accountancy Age
[12] [PDF] Application for refund of VAT - GOV.UK https://assets.publishing.service.gov.uk/media/665ee6bf7b792ffff71a86a6/VAT65A.pdf
[13] VAT refunds - European Commission - Taxation and Customs Union VAT refunds - Taxation and Customs Union - European Commission
[14] Eligibility for VAT refunds - PABLO - Douanes Eligibility for VAT refunds - PABLO | Portail de la Direction Générale des Douanes et Droits Indirects
[15] Recovery of overpaid VAT by customers direct from HMRC Simmons & Simmons
[16] DGT: 12% VAT Overpayment to Be Refunded - MUC Consulting DGT: 12% VAT Overpayment to Be Refunded
[17] Reclaiming VAT - Revenue Reclaiming VAT
[18] Refunds of overpaid value added tax (VAT) on purchases from abroad Refunds of overpaid value added tax (VAT) on purchases from abroad - The Norwegian Tax Administration
[19] Reclaim VAT Overpayment - Community Forum - GOV.UK https://community.hmrc.gov.uk/customerforums/vat/2c095f33-c407-ef11-a81c-0022481bd2df
[20] VAT refund | CGO Legal VAT refund | CGO Legal
Hope it helps
Regards
Michael.
You just have to correct it and then it gets picked up in the next VAT return you submit. You can’t amend a return that has already been submitted.
Thank you all sorted now
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