HMRC refunded VAT overpayment which i am not due.

[css_jay99]

Issue is that my accounts so far is correct but their account is not correct hence they think they owe me £36..... So they automatically paid that into my account . The dude I spoke to on the phone was not bothered and said I could overstate my next VAT by £36

Would that not just cause more issues if they tally the figures on the return up....... And then sent it back to me again?

This is a pain to get rid off! From a clean double entry point of view

[xoggoth]

Cost a darn sight more than £36 for them to rectify it properly, I'd have thought. Just make a compensating error to balance your books and overpay on some future date. As long as HMRC get broadly what they are owed I have never found them to be bothered about trivial bookkeeping errors, people make those all the time.

[prozak]

So is the issue that you are not due this or that you are due the money but are not sure how to account for it?

[craig1]

Add them as a creditor on your system. Don't go back in the system, treat it as if HMRC had loaned you the money at the date paid and just keep it as a liability.

[tractor]

...

HMRC refunded £36 back to my accounts saying i have a credit balance on my FRS VAT account.

Problem is that they are wrong.
I checked via my accounts.....
It turns out on a VAT return submitted back in 2008 , that I the declared VAT value was £36 less than the amount that I actually paid.

so what should I do bearing in mind that all my accounting is using SAGE hence double entries that will ripple through my accounts?

I wish they will just take the money back(to make my life easy) but there are kind of refusing there is a problem cos they cant see that far back on their system....
cheers

css_jay99

So they won't be able to argue with my £10k claim from 3 years ago that I forgot to put in?

But seriously, all you need to do is make an entry in other income balanced with an increase to the P & L for the year in question? As long as you include narrative, that will be acceptable shirley?

[css_jay99]

HMRC refunded £36 back to my accounts saying i have a credit balance on my FRS VAT account.

Problem is that they are wrong.
I checked via my accounts.....
It turns out on a VAT return submitted back in 2008 , that I the declared VAT value was £36 less than the amount that I actually paid.

so what should I do bearing in mind that all my accounting is using SAGE hence double entries that will ripple through my accounts?

I wish they will just take the money back(to make my life easy) but there are kind of refusing there is a problem cos they cant see that far back on their system....

cheers

css_jay99