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    Default how do i correct submitted understated VAT return?

    hi all,

    I mistakenly understated my online vat Flat rate return (mar-may). I was wondering how to account for it in the jun-aug return. Do i just inflate my current return by the missing sale amount?.

    Unfortunately my mar-jun return is on based on dicounted 12%VAT (1st year) which ended in may hence new VAT return would now be 13%. any clues?


    cheers

    css_jay99

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    Default

    Quote Originally Posted by css_jay99 View Post
    hi all,

    I mistakenly understated my online vat Flat rate return (mar-may). I was wondering how to account for it in the jun-aug return. Do i just inflate my current return by the missing sale amount?.

    Unfortunately my mar-jun return is on based on dicounted 12%VAT (1st year) which ended in may hence new VAT return would now be 13%. any clues?


    cheers

    css_jay99
    I'm probably wrong on this (as usual). Best thing to do is recalculate the returns for the previous period and write a cheque for the difference. Send a letter to the VAT man explaining your mistake and hope you don't get investigated. Treat your new VAT return as normal (i.e. 13% rule).
    If your company is the best place to work in, for a mere £500 p/d, you can advertise here.

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    If the VAT liability is £2k or less you just include it on your next VAT return. No need for disclosure.

    I think you've had it with the 1% - unless you make the disclosure.

    I guess it depends how much the 1% is to make it worth your while.
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    Default

    Quote Originally Posted by Just1morethen View Post
    If the VAT liability is £2k or less you just include it on your next VAT return. No need for disclosure.
    Yeah, that's my understanding (and what I've done in the past) as well.
    Where are we going? And what’s with this hand basket?

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    Default

    Just correct the shortfall on the next return and record the adjustment in your books.

    If you want to you can inform HMRC and ask them if there would be any interest to pay but if the error was sub £2k as per HMRC guidelines you probably would be wasting their time.

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    Someone I work with has just submitted a zero VAT return by mistake.

    He rang the VAT man, explained it, and was told that either they will spot the error and reject the return, so he should redo it then; or they will not spot the error and he should make good on the next return.

    So, up to three months interest free credit it seems, if you mess up your return "by mistake"

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    Default

    As stated it depends on the amount, also the period of the return. See here.

    http://www.hmrc.gov.uk/vat/errors-whattodo.htm

    However, for peace of mind it may be wise to ring up the helpline, tell them it's happened and what you have done. This enables them to make a note, and then, should they for any reason happen to look at the next return may prevent them from thinking "this looks odd" and sending it back for correction anyway.

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    I did this about 12 months ago, spoke to the guy in the office, he sent me out a form to fill, which I did - got the rebate back - no probs.
    Cenedl heb iaith, cenedl heb galon

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    Default

    cheers guys,

    I unfortunately, i did not keep a copy of my online VAT so could not really see what figures I entered,
    but my backup spreadsheet indicates that my figures were wrong but i might have entered the wrong amount in the VAT amount section
    looks like i swapped two digits around, hence i owe then £36

    I have given them a call and was told I can email then to ask for a copy of my return and that I can make electronic payment of the difference.


    Cheers again


    css_jay99

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    Quote Originally Posted by css_jay99 View Post
    I have given them a call and was told I can email then to ask for a copy of my return and that I can make electronic payment of the difference.
    Although the seem to have a reputation for being strict, I think the folks on the VAT helpline seem quite understanding and are certainly very helpful. They have always seemed willing to educate a newbie!!

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