A major £2.4 billion error from HM Revenue and Customs (HMRC) has offered a reminder about the importance of calculating your figures correctly.
The governing body has acknowledged its error when publishing its Value Added Tax (VAT) figures for April to August 2025
Its error meant the provisional 2025 to 2026 year-to-date receipts were incorrect and needed to be recalculated.
HMRC’s error highlights how easy taxpayers and businesses can make mistakes because not calculating your figures correctly can have a detrimental impact on you, your business and your family.
What impact has the error made?
Following the acknowledgement of HMRC’s mistake, the Office for National Statistics (ONS) confirmed the VAT error was a significant factor as to why their most recent tax and spending figures release included inaccurate financial data.
As the governing bodies try to piece together the errors made, it was better news for the Chancellor Rachel Reeves, who inadvertently received a £3 billion once the errors were corrected.
A timely boost for her ahead of the Autumn Budget, where she will clarify her plans for the UK economy and how she intends to fix the current financial black hole.
The correct figures did show lowered borrowing costs, but it still casts a cloud over what exactly is to come for taxpayers and businesses.
This catalogue of errors is not a great look for the governing bodies who will have put doubts in the minds of taxpayers, leaving them unsure, concerned and questioning their trust and reliability.
What can I do to ensure my calculations are correct?
It’s important to learn from the errors made by ONS and HMRC because it shows how easily mistakes can be made and how damaging their effect can be.
All it takes is one error in your accounting and you could face an investigation from HMRC, fines, sanctions and damage to you and your company’s image.
Calculating your figures correctly is so important and this is where you can let accountants take care of the company’s finances to ensure all financial data is correct and take that pressure off your shoulders.
Handing the reigns over to an accountant allows you to focus on other areas of your business and allows an experienced team to look after your finances and submit all HMRC returns on time.
Our expert team are here to help if you want clarity over your company’s figures and finances. We will collate and calculate all financial data to ensure your company is fulfilling its legal obligations.
Tap into our years of experience and we will give you comprehensive advice and support to ease any financial concerns you have.
Get in touch to see how our expert accountancy team can help.