VAT Flat rate blunder by my accountants

[contractor79]

RE - Can I sue my accountant?

Who signed the flat rate application form, you or the accountant? If you, I think you stand very little chance of suing your former accountant.

I'm not sure who signed it, thanks

[thunderlizard]

I did exactly the same thing (my fault, not the accountant's). The error was only half a percent difference, and only lasted a few months, so we just underpaid the next VAT return by the appropriate amount.

I put the company in the right category but then operated the wrong percentage on my calculations, so HMRC must have been able to see there had been overpayments (they didn't exactly jump up and down and shout about it though!). If you've put your company in the wrong category and operated the 'right' percentage for that category, it might be harder.

[LFC77]

Help!! Same problem here!

Hi there,

I have the exact same problem as you 'Contractor79'.
My accountant put me in the wrong percentage bracket for 3 years.
as such, Ive overpaid by a lot and want to get it back.

as your dilemma was 2 years ago, I was wondering what the outcome was, did you manage to recoup it from the VAT 'man'??

any advice would be very much appreciated as I'm hitting a brick wall trying to get it back, the HMRC are saying its my own fault and its not In their ''Policy'' to reimburse my error, (my accountants should I say)
I want to just underpay on my next return to make up the error but I'm worried what the outcome will be..?

Very Very frustrating!!! any help out there???
Thanks in advance

[Danielsjdaccountancy]

If the overpayment/underpayment of VAT is below £10,000 then you can simply adjust this on your next return, no need to file a separate form.
What you do need to ensure however is that the flat rate you are paying is the same as what HMRC have on record for you.
If you are looking to change your percentage retrospectively then I would recommend writing to HMRC and then try appealing. I'm sure if you asked your accountant they would do this for you as they should be authorised agents.
Personally I have found the revenue to be more thorough when I write to them.
Good luck!

[eggtastico]

I thought HRMC dont do refunds anymore & instead your supposed to adjust future payments?
maybe seek advice from another accountant?

[kaiser78]

Hi there,

I have the exact same problem as you 'Contractor79'.
My accountant put me in the wrong percentage bracket for 3 years...

You cannot entirely blame your accountant - both you and OP should have spotted this before signing the form or surely discussed with your accountant what FRS category you should fall under. Did you not receive a confirmation letter from HMRC confirming this ?