What should I do if I’ve overpaid VAT on a return?

If you’ve overpaid VAT, you can request a refund from HMRC or offset the overpayment against your next VAT return. Refund requests are handled through the VAT online system.

You can adjust the overpaid VAT directly on your next return if all of these are true:

• The error was accidental (not deliberate).

• It relates to a period that ended within the last 4 years.

• The net value of all VAT errors is within:

  • £10,000, OR

  • Between £10,000 and £50,000, as long as it does not exceed 1% of your Box 6 figure for that period.

✔ How to fix it #

Simply include the adjustment in Box 1 (decrease VAT due) on your next VAT return and keep a record of:

• What the error was

• Which VAT period does it relate to

• How did you calculate the adjustment

You can read more detailed guides on VAT:

Is There VAT on Used Cars? A Guide for UK Buyers

Can You Pay VAT in Instalments? Everything You Need to know