VAT652 Form Explained – Correcting VAT Return Errors

The VAT652 form (often searched as vat652 or vat 652) is HMRC’s official document used when you need to disclose and correct significant errors made on previously submitted VAT returns.

If your VAT return contains a mistake that cannot be corrected on your next return, HMRC requires you to notify them directly using the VAT652 form. Handling this process properly is crucial to avoid penalties, interest charges, or unnecessary investigations.

What is the VAT652 Form?

The vat652 form is the formal way to tell HMRC about errors in your VAT returns when:

• The net error is more than £10,000.
• The error is less than £10,000 but exceeds 1% of your turnover (up to a £50,000 cap).
• You prefer to formally disclose errors rather than adjust your next VAT return.

Using VAT652 ensures that your disclosure is recorded and reduces the risk of higher penalties if HMRC later discovers the error.

When to Use VAT652

You must submit a vat652 if:

• You incorrectly calculated VAT due on sales or purchases.
• You claimed VAT input incorrectly (e.g., on non-business expenses).
• You omitted sales subject to VAT.
• You used the wrong VAT rate.
• You made clerical errors leading to a misstatement of liability.

If the error is small (below thresholds), you can usually adjust it on your next VAT return. However, for larger or multiple errors, form VAT652 is mandatory.

How to Complete VAT652

1. Download the form from HMRC
2. Provide your VAT registration details (VAT number, business name, address).
3. State the VAT period(s) affected.
4. Describe the error clearly – explain how it happened.
5. Enter the correct VAT figures and the adjustment required.
6. Submit the form to HMRC by email or post (instructions on the form).

Example of VAT652 Use

• Case 1 – Under-declared VAT
  A company discovered it had under-declared £20,000 of VAT due to a software error. They filed VAT652 and avoided heavy penalties by voluntarily disclosing.
• Case 2 – Overclaimed Input VAT
  A business mistakenly reclaimed VAT on personal expenses. Submitting vat 652 prevented HMRC from issuing larger fines later.

Recommendations for Filing VAT652

✅ Double-check all calculations before submission.
✅ Be honest and transparent – HMRC is more lenient with voluntary disclosures.
✅ Keep supporting evidence (invoices, ledgers, reports) in case HMRC requests proof.
✅ Submit as soon as possible – delays may increase penalties and interest.
✅ Seek professional advice if the errors are complex or cover multiple years.

Common Mistakes with VAT652

❌ Submitting incomplete explanations – HMRC wants clear detail of how the error arose.
❌ Ignoring errors under the belief they “won’t be noticed”.
❌ Forgetting to calculate interest on underpaid VAT.
❌ Missing deadlines – delays increase HMRC scrutiny.

FAQ – VAT652

Q1: Can I file VAT652 online?
Currently, the vat652 form must be emailed or posted, not submitted through the online VAT portal.

Q2: What happens if I don’t file VAT652?
If HMRC discovers errors before you disclose, penalties are significantly higher.

Q3: Do I have to pay immediately?
Yes – once HMRC processes your disclosure, payment of underpaid VAT and interest will be due.

Q4: Can I reclaim VAT if I overpaid?
Yes – if VAT652 shows an overpayment, HMRC may refund or adjust your future liability.

Q5: Can Audit Consulting Group help me?
Absolutely – we prepare and submit VAT652 disclosures, calculate penalties, and negotiate with HMRC where needed.

Why Choose Audit Consulting Group for VAT652?

Correcting VAT errors with HMRC can feel daunting. At Audit Consulting Group, we:

• Review your VAT records and identify errors.
• Prepare and submit your VAT652 accurately.
• Communicate directly with HMRC on your behalf.
• Reduce penalties by ensuring full and voluntary disclosure.

👉 Don’t risk HMRC penalties – let us handle your vat652 form today.

Official HMRC guidance and form: https://www.gov.uk/guidance/check-if-you-need-to-report-errors-in-your-vat-return