vat 652 form

What is a VAT 652 Form and How to Correct VAT Errors?

Sometimes, errors may arise in the VAT return receipts due to human or technical faults. If you have noticed an error in your previous VAT return, then you must immediately inform the HM Revenue and Customs (HMRC) department.

However, to report VAT return errors, there is a separate systematic process. And this article is all about that systematic process. Continue with the following article to learn extensively about VAT 652 form and how you can correct errors made in the previous VAT returns.

Before going into detail about the VAT 652 form and how to correct VAT errors, If you’re new and want to calculate vat, use our Ireland VAT Calculator to calculate it more accurately with just a single tap.

What is VAT 652 Form?

The primary purpose of the VAT 65 form is to report errors in the previous VAT receipts to the HMRC department. These errors must be diagnosed and resolved immediately otherwise they can breach the current reporting threshold.

Depending upon cash value, there are two different procedures that you can opt for to correct the VAT errors. Let’s review each of these comprehensively to better understand HMRC VAT 652 forms.

  1. VAT Errors Below €10,000 or €50,000

    The errors below the greater of €10,0000 or less than the 1% turnover (the maximum amount is €50,000) are considered below threshold errors. These are minor errors that frequently appear in VAT returns.

    However, these errors do not need to be immediately resolved due to their insignificant nature. Instead, the HMRC department suggests adjusting these errors in the next VAT return receipts. But it is still mandatory to immediately report the errors to the HMRC. They will verify these errors and will adjust them in future VAT returns.

    In the case of minor errors, HMRC does not charge any interest. But they can impose a penalty against faulty VAT returns in a few specific cases. You can mitigate these penalties by promptly disclosing the error to the HMRC’s VAT Error Correction Team.

  2. VAT Errors Above €10,000 or €50,000

    In some negligent cases, the VAT error exceeds the value of €10,000 or €50,000. These are severe error situations that should be immediately reported and resolved. You must report the errors to the VAT Error Correction Team as soon as they are detected.

    To report the errors, you can write a formal letter or submit a VAT 652 form to HMRC. Timely diagnosis will save future VAT return receipts from potential faults. But since these errors are relatively significant, the HMRC will embed penalties and charge interest.

How to Correct VAT Errors?

How to Correct VAT Errors?

Now that you know the types of VAT errors, let’s discuss how these errors can be resolved. VAT 652 form is the most commonly and widely used method to correct VAT errors in VAT returns.

If you are unfamiliar with using this form, refer to the following points.

  • Access the VAT 652 form. We've attached the form link, so you don't have to hassle searching for it.
  • Enter the details individually for each period.
  • All the amounts should be entered in pounds and pence up to box 5.
  • From boxes 6 to 9, the amounts should only be entered in pounds.
  • Submit the form to the HMRC’s VAT Error Correction Department.
  • The VAT Error Correction Department will send you a confirmation notice verifying the interest/penalty amount. You will also receive the details regarding how to make the payment.
  • Lastly, you will receive a "Statement of Account," which will verify that the error has been resolved.

What Causes a VAT Penalty

The VAT penalty amount is decided on the basis of the error cash value and its timeline. If you prolong the error, the HMRC will label your report as "careless". You will be charged anywhere between "0% to 30%" of the penalty in this situation.

However, if the HMRC finds you a severe culprit after verifying that you have "concealed" information, you will be charged a 100% penalty of the revenue.

One of the most frequently asked questions is how to avoid the VAT penalty. Timely submission of the error and full disclosure are the only viable tactics to avoid HMRC penalties and taxes.


Many people have a tendency to report errors at the end of the accounting period. But in actuality, it is a foul practice. Prolonging the errors results in faulty VAT returns, and you may even get a penalty from HMRC.

The VAT 652 guidance website states that the VAT return receipts should be reviewed frequently to ensure no errors are made. But if a general error occurs, one must submit the “VAT 652 form” at the VAT 652 address, i.e., [email protected].”


How long does it take to process VAT 652?

According to the HMRC website, it takes about 21 business days to process the VAT 652 form.

Where do I send my VAT 652 form?

Once the VAT form is completed, submit it through email at [email protected] with the subject “VAT652.”

Rían Doyle

I'm a VAT professional with years of experience helping businesses with compliance and reporting. My goal is to simplify VAT calculation and provide valuable insights through my engaging writing style and clear explanations of complex concepts.