The March 2008 Budget increased the £2,000 voluntary disclosure de-minimis limit for errors to the greater of £10,000 or 1% of turnover, subject to an upper limit of £50,000 of VAT.  For adjustments above £10,000, the limit for correcting errors on the next return is calculated by reference to the net turnover for the return period.

For the NHS, the net turnover is the total business turnover (taxable and exempt) only, as should be declared in Box 6 of the VAT return.  The turnover figure should not include non-business healthcare funding and this funding should not be shown in Box 6.

HMRC have stated that these revised changes will not apply to annual Business Activities reviews or annual Partial Exemption calculations as these are not strictly corrections of errors.  This is because the practice of calculating business input tax and partial exemption liabilities annually rather than monthly is a concession allowed by HMRC.