We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
Getting your voluntary registration date right first time is crucial
A request to amend the date a business registers for VAT voluntarily does not carry a right of appeal or review.
A business chooses the date they become VAT registered when registering voluntarily. If a mistake is made when choosing this date, and it affects the businesses pre-registration cost calculations, this cannot be changed later. Businesses must fully consider their choice of registration date before making it.
HMRC may accept a request to retrospectively amend an EDR in exceptional circumstances. Businesses would still have the option of challenging HMRC through Judicial Review should they feel HMRC’s decision is unfair or unreasonable.
Guidance and the VAT registration manual have been updated to better support businesses in getting their EDR correct at the point of registration and the circumstances in which they can request an amendment if needed.
The VAT Registration Estimator is a digital tool designed to help businesses understand VAT registration and estimate what registering for VAT may mean for them. This tool is useful for businesses operating below the threshold and considering voluntary registration.
HMRC provides more information about registering for VAT voluntarily and choosing the date a business becomes registered at section 3.9 VAT Notice 700/1.
Error corrections
Separately, HMRC has withdrawn form VAT652 for error corrections. Businesses that need to correct errors on their VAT returns will now need to do this online or in writing.
In future, HMRC must be informed about corrections to VAT returns within the four-year time limit by either:
- updating the next VAT return
- making the correction online
- sending the correction in writing.
Where a deliberate error has occurred, or for those that do not want to make the adjustment on their next VAT return, they must either:
- make the correction online
- send the correction in writing.
Notifications in writing must include your VAT registration number. Send them to the VAT Error Correction Team by post at:
BT VAT
HMRC
BX9 1WR
You can also contact HMRC by
- telephone: 0300 200 3700
- email: inbox.btcnevaterrorcorrection@hmrc.gov.uk
Note that HMRC can issue penalties for errors.
Read VAT Notice 700/45 for further information on amending VAT returns when an error has been made, how to correct errors or claim a refund if VAT has been overpaid due to incorrect accounting.