I've (finally) ****ed up doing my own accounts

[ladymuck]

Bring cake please

With a file in it?

[eek]

With a file in it?

If he had files he wouldn't have made this mistake.

If you visit him and forget the cake just tell him you gave it to Mrs SimonMac to bring....

[Craig@Clarity]

Just about to hit my 10 year anniversary of doing my own books and I've finally made a mistake with my VAT returns, I reckon the value of my cock up is about £7k which is above the reporting threshold to self correct on the next return.

I have emailed HMRC so will see what happens when they get back to me, from what I have read the penalty is up to 30% so possibly another £2k + interest if I plan for the worse and hope for the best.

Just correct it on your next VAT return as the reporting threshold is £10k+. How far does the error go back? If it's for an accounting period that ended less than 4 years ago, just do it this way.

[SimonMac]

Just correct it on your next VAT return as the reporting threshold is £10k+. How far does the error go back? If it's for an accounting period that ended less than 4 years ago, just do it this way.

I thought that could only be done if the error was less than 1% of your box 6 figure

[Craig@Clarity]

I thought that could only be done if the error was less than 1% of your box 6 figure

Correct errors on your VAT Returns - GOV.UK

[SimonMac]

Correct errors on your VAT Returns - GOV.UK

I read it as the reporting threshold needs to be all three (less than £10K, less than 4 years, and less than 1%) are you saying it's a one or the other "less than 10K and 4 years" or "less than 1%"?

[Craig@Clarity]

I read it as the reporting threshold needs to be all three (less than £10K, less than 4 years, and less than 1%) are you saying it's a one or the other "less than 10K and 4 years" or "less than 1%"?

The three point criteria is less than £10k, not deliberate and less than four years. This then branches out to the reporting thresholds.

You can use the advised method as it's below £10k OR between £10k-£50k but less than 1%. You use form VAT652 if the error is between £10k-£50k and more than 1% OR the error is more than £50k.

Have a read of their guidance below, in particular 4.3. Also note about informing them of the adjustment if they penalise you and you want to appeal.

How to correct VAT errors and make adjustments or claims (VAT Notice 700/45) - GOV.UK

[SimonMac]

The three point criteria is less than £10k, not deliberate and less than four years. This then branches out to the reporting thresholds.

You can use the advised method as it's below £10k OR between £10k-£50k but less than 1%. You use form VAT652 if the error is between £10k-£50k and more than 1% OR the error is more than £50k.

Have a read of their guidance below, in particular 4.3. Also note about informing them of the adjustment if they penalise you and you want to appeal.

How to correct VAT errors and make adjustments or claims (VAT Notice 700/45) - GOV.UK

Perfect, thanks!

[SimonMac]

Just got off the phone with the VAT people and they are happy the mistake was genuine and as I came to them I can correct on my next return no harm no foul

[ladymuck]

Phew! That's a relief