HMRC’s new online process for VAT error corrections

Digital is the future. How often have we heard those words? It is obviously true but there are often stumbles and problems on the computerised journey to paradise. Indeed HMRC is likely to acknowledge that statement – many of the department’s ambitious technological projects have been either delayed or aborted for a variety of valid reasons. And as a personal observation I am delighted that the government has delayed the introduction of income tax making tax digital (MTD) for sole traders and landlords until April 2026 to prevent more unwanted tears and tantrums.

However here is some positive news: I recently dealt with a VAT refund claim on behalf of a client in relation to errors made on past returns. The amount of tax involved meant it had to be declared as a separate disclosure to HMRC rather than included on the next VAT return....