Business News - August
£50,000 VAT Errors
Businesses have long been allowed to correct net errors not exceeding £2,000 in their VAT returns. From the first new VAT period commencing on or after 1 July 2008, HMRC have raised the previous limit of £2,000 to a maximum figure of £50,000.
Errors of more than £50,000 can also be put right on the return for businesses whose turnover for VAT purposes exceeds £5 million.
HMRC are in the process of updating their website to reflect this change.
Please do get in touch if you have any concerns in this area.
Internet Link: HMRC notes on VAT errors
