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If the error results in VAT liability of more than de minimis limit, default interest will be charged.
If the error results in VAT due of £ 50000
, is It under de minimis limit ? Or 10000 is the maximum limit ?
Because de minimis limit is the greater of..
1.) 1% of total turnover in VAT filing period upto 50000 and
2.) 10000.
I’m confused :/If the turnover is more than £1m then 1% of the turnover will be greater than 10,000 and that figure will be used, but only up to a maximum 50,000 (ie if turnover is more than £5M use the maximum 50,000)
Sir i dont have doubts in calculating de minimis limit . What i want to ask is ..
a. error resulted in VAT liability of 12000
b. error resulted in VAT liability of 52000.
For each of the above cases, i’m confused whether the default interest will be charged or not for each case..
Thanks.
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