Under-claimed VAT can now be reclaimed as far back as 4 years, rather than 3 years. If the sum to be claimed is less than £10,000 then you can reclaim it in your next VAT return. If it is more than £10,000 then it must be reclaimed through the submission of the appropriate form. It is important to note that VAT errors can now also be assessed as far back as 4 years, previously 3 years, with interest being owed to HMRC on all outstanding payments.
If you have under-claimed VAT you will not be able to claim interest on the outstanding amount owed to you, if it was a mistake on your part. However if the mistake was attributable to the HMRC then you may be able to claim interest on the money owed to you.
In the case of fraud, your VAT assessments can be checked as far back as 20 years.
If you have any doubts about your VAT payments or for more information contact us here at M.B McGrady & Co.