Adjustment with minus figures

Adviser's position

Cases

Statutory set-off: disregarded limitation on date by which HMRC can recover

Unresolved repayment claim: basis of claim revised although outside time-limit

Correcting VAT account: refund for supply of goods (manufacturer cash back)

Credit note: reduced consideration

Decrease in consideration

No bad debt or time limit

Current-return adjustment (Method 1)

Conditions for correcting returns

Generally

Default interest charge on underdeclaration errors

Deliberate error

Made beyond four-year limit

Penalty

Electronic scheme returns

Error correction notification (Method 2)

Generally

Paying HMRC for underdeclaration

Errors made using HMRC's interpretation

EU sales lists

Approved software suppliers for completing ESLs

Flowchart

Four-year cap: one-month timing difference between input and output tax

Generally

Interaction with known underassessment penalty

Interest on repayment claims

Intrastat declarations

Matters which are not errors

Methods

Note error in VAT records

Partially exempt persons

Penalty for careless or deliberate error

Protective claims

Time limit

Cases

Exception

Generally

Unjust enrichment defence restricted to claim for repayment of output tax

VAT Error Correction Team offices

Voluntary disclosure