Commentary

V7.284 Difference between an error and an adjustment

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.284 Difference between an error and an adjustment

Part V7 Tax planning | Commentary

V7.284 Difference between an error and an adjustment

There is a big difference between an error and an adjustment – it is only errors that need to be corrected by making a notification to HMRC. See Example 1.

Example 1

ABC Ltd is a partly exempt company, with taxable supplies from selling houses on a commission basis and exempt sales from arranging financial services products.

The company has come to the end of the tax year to 31 March 2015, and calculated its annual adjustment for partial exemption purposes. An amount of £2,400 is payable to HMRC. The company has also identified that a sales

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