How to report under-declaration on next VAT100?

How to report under-declaration on next VAT100?

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The client has erroneously been using FRS when they should have been using the standard method.

There is now a further £3k of output VAT to add to the next VAT return. However,there is nothing to add to the outputs figure itself. The result would be that by simply adding the output VAT to next quarter's return but not adding anything to the outputs, box 3 will exceed 20% of outputs.

Will this produce a rejection or some other "flag"?

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By carnmores
03rd Sep 2015 16:56

you will get a message saying are you sure
Or similar, say yes and file away

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By User deleted
04th Sep 2015 11:53

Have a look here ...

... https://www.gov.uk/government/publications/vat-notice-70045-how-to-corre...

Adjusting the VAT return does not constitute disclosure. If HMRC investigate the return this may be deemed prompted disclosure and the reduction in  any penalty will not be as much. I think using the wrong basis for accounting for VAT would be a careless error!

Therefore you may wish to submit VAT652, on which you also notify the return in which the amendment is made. In view of the size of the adjustment I recommend this, were it only a few hundred pounds may be not.

 

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