How can this be recorded?

How can this be recorded?

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A client submitted their own first VAT Return without running it past be and incorrectly claimed VAT on a car purchase.

The VAT office have issud a suspended penalty for 1 year provided they "set up and countersign your purchase list to confirm invoices entered have been checked against guidance"

They use Sage instant accounts so a list of purchases can easily be printed each quarter but how on earth do you prove you you have checked guidance?

 

Replies (2)

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Red Kite
By Red Kite
26th Sep 2016 08:29

I presume you're relating to;-
https://www.gov.uk/government/publications/compliance-checks-suspending-...

You say the error was due to your client not asking you to check their calculation? That being the case, I would suggest that you seek instructions to complete future returns and you will be able to introduce your own strategy.
You might want to speak to either; the vat helpline, or a vat officer, to discuss the finer points of what is required?

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By Moonbeam
26th Sep 2016 10:09

If you are the VAT agent then you can write to HMRC VAT section explaining that you will be checking the information and submitting the returns in future, as long as that is what client agrees. If not the VAT agent, just send a word doc of what the client should print onto their letterhead to send to them. You should register asap as VAT agent if you aren't registered.

Offer to email HMRC your detailed report with the VAT return for the first quarter you take over to give them peace of mind.

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