As of the 8th September 2025, HMRC has withdrawn Form VAT652, which was previously used to report VAT return errors that couldn’t be corrected on the next return. A new process is now in place. 

Step 1: Can you fix it in your next return? 

If you discover an error, the first thing to do is check whether you can correct it on your next VAT return. This is allowed if: 

• The net errors (output VAT minus input VAT) are less than £10,000; or 

• The net errors are between £10,000 and £50,000, and also less than 1% of the Box 6 figure on that return. 

HMRC has published an online tool to help you check whether you need to formally notify them of an error. You can access it here. 

Step 2: If you can’t amend it in your return 

If the error is too large to fix in your VAT return, you must disclose it using HMRC’s online error correction service. To use this, you’ll need to sign in with your Government Gateway user ID and password. 

If you’re unable to use the online service, you can still report errors by post or email: 

• Post: BT VAT, HMRC, BX9 1WR 

• Email: inbox.btcnevaterrorcorrection@hmrc.gov.uk 

Penalties to be aware of 

Even if you adjust the figures in your VAT return, HMRC may still apply penalties if they later find the error was due to careless behaviour. Simply correcting it on the return does not count as a full disclosure. To avoid penalties, you should also notify HMRC through the error correction service.