CH81142 - Penalties for Inaccuracies: Types of inaccuracy: Correction of errors for indirect taxes - monetary limits

You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details.

The indirect tax error correction limits, below which errors can be adjusted in the return for the period of discovery, are as follows. These limits apply to errors discovered in accounting periods beginning on or after 1 July 2008.

Value Added Tax (VAT)

The net value of the error must not exceed the greater of

  • 拢10,000, or
  • 1% of the box 6 figure on the VAT return for the period of discovery, subject to an upper limit of 拢50,000.

Insurance Premium Tax (IPT)

The value of the errors must not exceed the greater of

  • 拢10,000, or
  • 1% of the box 10 figure on the IPT return for the period of discovery, subject to an upper limit of 拢50,000.

Air Passenger Duty (APD)

The value of the errors must not exceed the greater of

  • 拢10,000, or
  • 1% of APD (before adjustment for previous errors) due on the APD return for the period of discovery, subject to an upper limit of 拢50,000.

Landfill Tax, Climate Change Levy and Aggregates Levy

Where the person is registered for VAT, the value of the errors must not exceed the greater of

  • 拢10,000, or
  • 1% of the box 6 figure on the VAT return for the period of discovery, subject to an upper limit of 拢50,000.

If the person is not liable to be registered for VAT there is a single limit of 拢10,000.

Machine Games Duty (MGD)

Where the person is registered for MGD, and not more than four years has passed since the date that the return was due, the value of the errors must not exceed the greater of

  • 拢10,000, or
  • 1% of the total net takings from dutiable machine games in the period of discovery, subject to an upper limit of 拢50,000.