Submitting your VAT returns accurately and on time is crucial for any UK business. However, it's not uncommon for errors to creep in, and when they do, a Revised VAT Return is necessary. This article will guide you through the process, providing a Sample Letter for Revised VAT Return that you can adapt to your specific situation.
Understanding the Revised VAT Return
A Revised VAT Return is essentially an amended version of your original VAT return, submitted to correct any errors or omissions you discover after the initial filing. It's a formal process that requires clear communication with HM Revenue and Customs (HMRC). The importance of submitting a revised return promptly cannot be overstated, as it can help you avoid potential penalties and interest charges.
When you realise you've made a mistake, you need to inform HMRC. The best way to do this is by sending a Revised VAT Return along with a clear explanation of the changes. This explanation is typically in the form of a letter or an email. Here's what you might include in your explanation:
- The VAT return period the correction relates to.
- The original figures submitted.
- The corrected figures.
- A clear and concise reason for the error.
Sometimes, a simple table can effectively show the differences:
| Description | Original Figure | Revised Figure | Difference |
|---|---|---|---|
| Output Tax | £1,000.00 | £1,200.00 | +£200.00 |
| Input Tax | £500.00 | £450.00 | -£50.00 |
Sample Letter for Revised Vat Return Due to Unclaimed Input Tax
Subject: Revised VAT Return - VAT Period [Your VAT Number] - [VAT Return Period Dates]
Dear Sir/Madam,
Please accept this letter and the attached revised VAT return for the period ending [End Date of VAT Period] as a correction to our previously submitted return.
Upon reviewing our records, we discovered that we inadvertently failed to claim input tax on a purchase dated [Date of Purchase Invoice]. The value of this input tax amounts to £[Amount of Input Tax].
Our original return declared an output tax of £[Original Output Tax] and an input tax of £[Original Input Tax], resulting in a net VAT payable of £[Original Net VAT Payable].
The revised figures are as follows: Output Tax £[Revised Output Tax], Input Tax £[Revised Input Tax], resulting in a net VAT payable of £[Revised Net VAT Payable]. This represents a reduction in our VAT liability of £[Reduction Amount].
We apologise for any inconvenience this may cause. Please confirm receipt of this revised return and advise if any further action is required from our end.
Yours faithfully,
[Your Company Name]
[Your Name]
[Your Contact Number]
[Your Email Address]
Sample Letter for Revised Vat Return Due to Overstated Sales
Subject: Revised VAT Return - VAT Period [Your VAT Number] - [VAT Return Period Dates]
Dear Sir/Madam,
We are writing to submit a revised VAT return for the period ending [End Date of VAT Period].
We have identified an error in our previous submission where we overstated our sales by £[Amount of Overstated Sales]. This was due to [briefly explain the reason, e.g., a duplicate entry of an invoice, an incorrect invoice value].
The original return reported output tax of £[Original Output Tax] and input tax of £[Original Input Tax], with a net VAT payable of £[Original Net VAT Payable].
The corrected figures show output tax of £[Revised Output Tax] and input tax of £[Revised Input Tax], resulting in a net VAT payable of £[Revised Net VAT Payable]. This adjustment increases our VAT liability by £[Increase Amount].
We have enclosed the revised VAT return reflecting these changes. Please let us know if you require any further clarification or documentation.
Sincerely,
[Your Company Name]
[Your Name]
[Your Contact Number]
[Your Email Address]
Sample Letter for Revised Vat Return Due to Incorrect VAT Rate Applied
Subject: Revised VAT Return - VAT Period [Your VAT Number] - [VAT Return Period Dates]
Dear Sir/Madam,
This letter accompanies our revised VAT return for the period ending [End Date of VAT Period].
We found that we incorrectly applied the standard rate of VAT to a supply that should have been subject to the reduced rate. The value of this transaction was £[Value of Transaction], and the VAT difference is £[VAT Difference Amount].
Our original VAT return included output tax of £[Original Output Tax] and input tax of £[Original Input Tax], leading to a net VAT payable of £[Original Net VAT Payable].
The revised figures are: Output Tax £[Revised Output Tax], Input Tax £[Revised Input Tax], with a net VAT payable of £[Revised Net VAT Payable]. This means our VAT liability has decreased by £[Decrease Amount].
We apologise for this oversight. We have attached the corrected VAT return for your review.
Yours faithfully,
[Your Company Name]
[Your Name]
[Your Contact Number]
[Your Email Address]
Sample Letter for Revised Vat Return Due to Late Received Invoice
Subject: Revised VAT Return - VAT Period [Your VAT Number] - [VAT Return Period Dates]
Dear Sir/Madam,
We are submitting a revised VAT return for the period ending [End Date of VAT Period].
We recently received a crucial invoice dated [Date of Invoice] from our supplier, [Supplier Name], which we were unable to process for the original submission. This invoice relates to input tax of £[Amount of Input Tax].
Our initial VAT return showed output tax of £[Original Output Tax] and input tax of £[Original Input Tax], resulting in a net VAT payable of £[Original Net VAT Payable].
With the inclusion of this late invoice, the revised figures are: Output Tax £[Revised Output Tax], Input Tax £[Revised Input Tax], and a net VAT payable of £[Revised Net VAT Payable]. This adjustment reduces our VAT liability by £[Reduction Amount].
We trust this revised submission is in order. Please let us know if you have any queries.
Sincerely,
[Your Company Name]
[Your Name]
[Your Contact Number]
[Your Email Address]
In conclusion, while making mistakes on VAT returns can be stressful, the process of submitting a Revised VAT Return is designed to be straightforward. By understanding the requirements and using a Sample Letter for Revised VAT Return as a template, you can ensure you communicate effectively with HMRC and keep your business compliant. Always aim to correct errors as soon as you discover them to minimise potential issues.