HMRC has withdrawn Form 652. How should you notify VAT errors going forward?
Form VAT 652 was previously used to notify HMRC of errors in VAT returns but has now been withdrawn from September 2025. The form was used for voluntary disclosures of VAT errors that exceeded certain thresholds or couldn't be corrected on the next VAT return. Businesses must now report VAT errors online or by letter to HMRC's VAT Error Correction Team, providing the same information that would have been included on the withdrawn form.
Remember, if the net tax owed or owing is less than £10,000, the errors can be corrected on your next return. For larger businesses, they can also be included on the next return if the tax owed is less than £50,000 and less than 1% of the Box 6 outputs figure for the period when the correction is being made. This is the simplest method, so check whether you can do this in the first instance.
Related Topics
-
Planning ahead for pension salary sacrifice changes
From 6 April 2029, both employers and employees will be required to pay Class 1 NI on pension contributions in excess of £2,000 made through a salary sacrifice arrangement. What can you do about it?
-
Marginal relief - responding to an HMRC nudge letter
HMRC is running a campaign to clamp down on incorrect claims for corporation tax marginal relief (MR). In what circumstances might you be challenged by HMRC and how should you respond?
-
Can you claim input tax on costs linked to electric cars?
Your business intends to go green and buy new electric cars. Can you claim input tax on the purchase of the vehicles and their subsequent fuel costs? Additionally, what recent change has been announced by HMRC?