Is it a Accidental/Careless/Deliberate Mistake ?

[scrollock]

I have several clients who I invoice on a monthly billing cycle.

The work I do, involves giving my clients a lifetime licence to use my work (I retain the IP rights)

There a was particular piece of work which one client wanted to own the IP outright and we negotiated a separate fee and drew up a separate contract for it.

I entered it into my spreadsheet, but failed to declare it (SS only summed the 3 monthly invoices in that quarter and missed the last one) and I missed it at the time as the amount due was around the normal amount.

The underpayment was £4k, do I need to fill in VAT652 ? My accountant seems to think so.

[TheCyclingProgrammer]

It didn't take long to find this, did you Google it?

https://www.gov.uk/vat-corrections/adjustments

Not deliberate, less than £10k, correct it on your next return (assuming not from more than 4 years ago).

Why does your accountant think you need to report it?

[scrollock]

It didn't take long to find this, did you Google it?

https://www.gov.uk/vat-corrections/adjustments

Not deliberate, less than £10k, correct it on your next return (assuming not from more than 4 years ago).

Why does your accountant think you need to report it?

Yeah I came across the link, there doesn't seem to be much clarification out there between what constitutes an accidental and a careless mistake.

Not sure why my accountant thinks I need to report it.

[TheCyclingProgrammer]

Yeah I came across the link, there doesn't seem to be much clarification out there between what constitutes an accidental and a careless mistake.

Not sure why my accountant thinks I need to report it.

It seems pretty clear that a VAT652 form is only needed for deliberate errors or those that don't meet the other criteria.

However the above page does also say:

You should tell HMRC about careless errors separately in writing, as well as adjusting your current VAT Return. This may lead to a reduction in the penalty.

Your error was arguably careless, but not deliberate, so it may be worth informing HMRC in writing about the error as well as correcting on your next VAT return, as it says above. I'd be surprised if there is any penalty but there may be some interest.

Why don't you give the VAT department a ring and clarify with them what they want?

[MrMarkyMark]

It seems pretty clear that a VAT652 form is only needed for deliberate errors or those that don't meet the other criteria.

However the above page does also say:



Your error was arguably careless, but not deliberate, so it may be worth informing HMRC in writing about the error as well as correcting on your next VAT return, as it says above. I'd be surprised if there is any penalty but there may be some interest.

Why don't you give the VAT department a ring and clarify with them what they want?

+1 good advice here

[LondonManc]

Yeah I came across the link, there doesn't seem to be much clarification out there between what constitutes an accidental and a careless mistake.

Not sure why my accountant thinks I need to report it.

Forward that link to your accountant - I'd imagine he knows why it needs reporting and at a guess it's partly to save you any problems. Are you sure you're cut out to be an accountant?