Keep the VAT man happy!

KEY POINTSWhat are the voluntary disclosure procedures?The three-year time limit for correcting errors.HMRC's treatment of errors

MISTAKES ARE INEVITABLE in all aspects of life. VAT accounting is no exception. The consequence will often depend on the severity of the situation and whether the offence has been detected by an HMRC officer on a VAT visit or been disclosed in advance by a taxpayer when he has discovered an error e.g. at the end of the financial year. In simple terms it is best practice to disclose an error to HMRC as soon as it is discovered.
In this article I consider the way that VAT errors should be dealt with by an adviser or taxpayer when they are detected and the HMRC approach to dealing with these errors. It is also a useful opportunity to consider the subject of VAT errors because...