HMRC withdrew Form VAT652 (Error Correction) on 8 September 2025. This form was previously used to notify HMRC of VAT return errors that could not be corrected on the next VAT return.
There is now a new procedure in place for correcting VAT errors, and it’s important for businesses to understand how to handle any mistakes to avoid unnecessary penalties.
Correcting errors on your next VAT return
If you discover an error on a VAT return, the first step is to check whether it can be corrected on your next VAT return. You can amend the next return if:
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The total net errors (output VAT less input VAT errors) are less than £10,000; or
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The net errors are between £10,000 and £50,000 and also less than 1% of the Box 6 figure on the VAT return in which the correction is being made.
HMRC has published an online tool that allows businesses to check whether they need to notify HMRC of VAT return errors. This service can be found on the HMRC website.
When to use the online error correction service
If the error cannot be corrected on the next VAT return, it must be disclosed using HMRC’s new online error correction service. The service can be accessed through the HMRC website and requires a Government Gateway user ID and password.
For those unable to use the online service, disclosures can still be sent to HMRC’s Error Correction Team either by post or by email:
Penalties for careless errors
If an error arises as a result of careless behaviour, HMRC may still charge penalties even if the adjustment has been made on the VAT return. HMRC makes it clear that including the correction on the return does not count as a formal disclosure.
This means that without notifying HMRC separately through the online error correction service, businesses could still face unprompted penalties if the error is later identified by HMRC.
How A&C Chartered Accountants can help
If you’ve found a VAT error and are unsure how to correct it, or whether you need to notify HMRC, we can help guide you through the process. Our team can review your VAT returns, assess the nature of the error, and ensure that the correction is handled correctly to minimise the risk of penalties.
If you’d like to discuss a VAT correction or need help using HMRC’s new service, get in touch with our team at A&C Chartered Accountants today.