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25th August 2010
Most VAT errors 'not penalised' says HMRC
HMRC has assured contract and freelance workers that most errors on VAT returns will not incur a penalty.
The organisation regularly receives documentation with mistakes or omissions, the majority of which it accepts as unintentional.
The group points out that many mistakes which are subsequently discovered on VAT returns can be easily fixed by the customers themselves.
Consequently, HMRC has recently issued a guide highlighting common mistakes on VAT forms and how they can easily be corrected by the person who has submitted the return.
HMRC said contractors who become aware of any such errors should act immediately to avoid penalties, which will also ensure that any issues are quickly resolved and any necessary repayments are made.
"The majority of small errors will not be careless or deliberate, so no penalty will be due. People do make mistakes and HMRC does not expect perfection," the department said.
HMRC recently announced it is adopt a softer approach to tax avoidance in the coming months, in a bid to ease a growing backlog of tax disputes and free up billions of pounds from pending cases.
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