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VAT Reclaim - FRS

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    VAT Reclaim - FRS

    Hi

    I have been contracting for many years and have had an accountant all that time - I let them worry about the VAT and Corp Tax.

    Turns out that when I had a change of accountant 3 years ago who advised I had underpaid VAT so needed to make an additional payment of £4,300 odd, two years later it appears that was incorrect- I had only underpaid by £1,200.

    So, I have now gone perms and so can't get the money back by subtracting from a quarterly VAT return.

    I spoke to my accountant and they suggested to leave it as my company was closing and a reclaim on the FRS would raise a flag - I was interested what others thought, I get what he is saying but also that it is a lot of ££ to be saying goodbye to and can't help but feel like the accountant is wanting to 'hide' there errors.

    #2
    Ask him why it would raise a flag? And then question what there is in your accounts that could be flagged anyway.

    If it was me, I'd rather have the money that is due to me in my pocket rather than HMRC's - if it was this accountant's mistake then tell him you'll accept his advice and take the money directly from him instead.
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    Comment


      #3
      Flag

      Said that FRS is designed so that payments are made to HMRC - reclaiming money on the scheme is unusual and he feels it would flag that errors were being made and could prompt and investigation.

      Not sure what to think.....

      Comment


        #4
        Reclaiming money isn't unusual and can be done for purchases of £2k or more (I'm doing this now)

        If you were £4,300 short then your returns would have been resubmitted and boxes for turnover etc would all have been wrong ? Or they are wrong now and need to be corrected.

        I don't see what the issue is and also don't understand why he's suggesting you just forget about it.

        Comment


          #5
          Originally posted by SneakySimon View Post
          Said that FRS is designed so that payments are made to HMRC - reclaiming money on the scheme is unusual and he feels it would flag that errors were being made and could prompt and investigation.

          Not sure what to think.....
          He's scared that you will be fined for the muck up as it isn't the first one, and as he does the VAT you will get the fine money of him or kick up a fuss with his certifying body.

          I suggest you tell him you want to reclaim it.

          If he refuses to do it for you then:
          1. Get online and do it yourself, and,
          2. Put in a complaint and threaten to take it to his certifying body
          "You’re just a bad memory who doesn’t know when to go away" JR

          Comment


            #6
            Thanks

            Thanks all for comments - I will reclaim (and change accountants to close my company!)

            I assume I just reclaim using the usual quarteerly submission?

            Comment


              #7
              Originally posted by SneakySimon View Post
              Thanks all for comments - I will reclaim (and change accountants to close my company!)

              I assume I just reclaim using the usual quarteerly submission?
              Sorry can't remember the rules properly but I was told if it was more than 10% of the submission then you have to do it on some form. I suggest you google for the information on gov.uk, or phone the VAT helpline and check.

              However ask your accountant do the reclaim first. Make sure you put your request in writing and chase it if he doesn't respond. Then and only then do it yourself.
              "You’re just a bad memory who doesn’t know when to go away" JR

              Comment


                #8
                Originally posted by SueEllen View Post
                Sorry can't remember the rules properly but I was told if it was more than 10% of the submission then you have to do it on some form. I suggest you google for the information on gov.uk, or phone the VAT helpline and check.

                However ask your accountant do the reclaim first. Make sure you put your request in writing and chase it if he doesn't respond. Then and only then do it yourself.
                Cheers, will investigate - since the submission will be for zero , it will be greater than 10% of the value.

                Thanks

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