VAT Deferral Scheme and error correction

HMRC has updated the guidance on the VAT Deferral Scheme to include a new section on how to correct errors on VAT returns related to the deferral periods.

If a business finds an error it should:

fill in form VAT652

send it to the VAT Error Correction Team

If the error results in the need to pay further VAT, businesses can contact the COVID-19 helpline to talk it through with HMRC, and ask to include extra error correction payments in their deferred VAT balance after (both of the following):

  • HMRC has processed their error correction
  • They have received a Statement of Account confirming the balance.

Any addition VAT payment needs to be paid in full by 31 March 2021.  The guidance on VAT deferral corrections can be read here.