HMRC’s VAT notice 700/45 entitled How to correct VAT errors and make adjustments or claims provides guidance to VAT registered businesses on avoiding and correcting errors on VAT returns.

This notice explains to VAT registered businesses how to:

• Amend VAT records if they contain errors.
• Correct errors on VAT returns which have already been submitted.
• Claim a refund for overpaid VAT.
• Complete VAT returns or make a claim where there is a disagreement with HMRC as to the correct VAT treatment of a supply.
• Complete VAT returns where HMRC's practices in relation to VAT are being challenged in the Courts.

The notice also includes a section on unjust enrichment and the reimbursement scheme as well as the options available to taxpayers that disagree with a decision or ruling by HMRC.

Failure to correct errors can result in penalties and interest. Correcting errors proactively can result in there being reduced or zero penalties depending on the reasons for the inaccuracies.

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