Incorrectly paid VAT

Incorrectly paid VAT

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Hi.

I've just completed and posted a VAT 100 form(along with a payment) for a company, for the quarter 01/01/08-31/03/08, therefore due on the 30/04/08.

I've just realised that I've made a mistake, and the net effect is that I've underpaid the Vatman by £22k.

Do I still use the voluntary error disclosure form even though the due date is not until end of this month, or is there an alternative method of showing the correction?

Will I incur charges/penalties due to the mistake?

Any help appreciated,

Thanks

Mr Davies

Replies (3)

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By theaardvark
24th Apr 2008 15:28

Misread.....
Ooops. I guess I completely misread the figure. I could have sworn it said something much less. Thank you for pointing out my oversight Neil.

For errors over £2,000 a voluntary disclosure must be submitted. There is no alternative method even though the return is not yet due.

A penalty will not normally be imposed where the error is corrected during "a period of grace" that runs up to the due date of the following return.

Any interest due is calculated from the latest date the return on which the error was made was due to be submitted and paid. An early submission of the Voluntary Disclosure will minimise any interest due. You could even make payment with the disclosure. However, I would recommend speaking to HMRC before doing this as Disclosures can take some time to process and there is a risk that the payment would simply be repaid before the debt is established.

Regards

Paul Taylor

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By neileg
24th Apr 2008 11:44

Paul
The error is £22k.

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By theaardvark
24th Apr 2008 11:14

On next VAT return
As the error is less than £2,000 you can correct it on the next VAT return. there will be no penalty or interest as it is simply included in the return payment.

Regards

Paul Taylor
Senior VAT Consultant
Dains

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