HMRC has updated the guidance on the VAT Deferral Scheme to include a new section on how to correct errors on VAT returns related to the deferral periods.
If a business finds an error it should:
If the error results in the need to pay further VAT, businesses can contact the COVID-19 helpline to talk it through with HMRC, and ask to include extra error correction payments in their deferred VAT balance after (both of the following):
- HMRC have processed their error correction
- They have received a Statement of Account confirming the balance.
Any addition VAT payment needs to be paid in full by 31 March 2021. The guidance on VAT deferral corrections can be read here.