Late claims happen when changes affect a VAT return you have already submitted. This usually happens if you update the VAT rate on an older transaction, or if you add a missed transaction into a past VAT period.
The app automatically tracks these changes for you. If your current VAT return period contains any late claims, we will include them in your next return by default so you stay compliant.
How to manage late claims in the app
If you need to defer these adjustments, you can choose to exclude them from your current filing.
Go to your VAT return summary in the app.
Find the Include late claims toggle.
Switch the toggle off to defer the late claims to your next VAT period.
⚠️ Important: The app only accounts for late claims from VAT periods that you submitted directly through this app. We assume any other historic late claims were already settled in your previous external returns.
How HMRC deals with late claims
HMRC has strict rules on how you can correct errors from previous VAT returns. Whether you can fix them using the toggle in the app depends entirely on the net value of the error:
Errors up to £10,000: If the total net value of the errors is £10,000 or less, you can leave the Include late claims toggle switched on. This safely adds the amount to your current return.
Errors between £10,000 and £50,000: You can still use the toggle method as long as the net error does not exceed 1% of your total sales (the figure in Box 6) for the current return period. If it goes over this 1% limit, you must report it to HMRC separately.
Errors over £50,000: You cannot use the app toggle for these. You must always report net errors over £50,000 directly to HMRC using their official error correction notification.
💡 Note: You can choose to notify HMRC separately for an error of any size, even if it falls below these limits. For more details, you can read the full error correction guidance directly on the GOV.UK website.