JUNE 2008

VAT - CHANGES FROM 1 JULY 2008

The limit on the amount of net errors that can be corrected in a subsequent VAT return (instead of having to be disclosed separately to HMRC) is being increased. This will have effect for accounting periods commencing on or after 1 July 2008.

Net errors of up to the greater of £10,000 or 1% of VAT turnover for the accounting period in which the error is discovered, up to a maximum correction of £50,000, can be corrected in a subsequent VAT return. The current limit is just £2,000.