HMRC will be withdrawing VAT form 652 from September 2025. Previously this form was used to voluntarily notify HMRC of VAT errors that exceeded the £10,000 threshold. Going forward businesses must report VAT errors online or by letter to HMRC’s VAT Error Correction Team, you will still need to provide the same information that would have been included on form 652.
The reporting thresholds remain the same, for any errors that result in a tax position of less than £10,000 being either owed or owing the adjustments can be made on the next available return. Any adjustment greater than £10,000 the adjustments can no longer be reported on form 652 and need to be reported in the alternative methods.
For large businesses the adjustment can be included on the next return if it is less than £50,000 or 1% of the total outputs for the period the correction is being made in.
