JJB Sports knew of tax issue for a year before reporting to HMRC The email, dated August 2010, goes on to raise concerns that the delay in reporting the issue to the tax authorities could lead to HMRC thinking "we have deliberately amended VAT codes from our suppliers." On Thursday JJB said no customers had been overcharged as a result of the mistakes. However, the statement is at odds with internal documents dating back to August 2010 which reported that £353,000 of VAT had been "incorrectly charged to customers." A company spokesman said the report was incorrect. In its latest annual report the company made a £5.3m provision relating to the tax errors. The problems relate to the incorrect coding of children's clothing including Premiership football kits. Revelations about the tax problems come as JJB is undergoing a sale process led by accountants KPMG. Rival Sports Direct is understood to be leading the race to buy the company, most likely through a pre-pack administration. A JJB spokesman said: "The HMRC provision relates to an error at the group level accounts. As such there was absolutely no impact on customers or the prices they paid for products whatsoever. The matter has been resolved satisfactorily and fully with HMRC.