outside scope VAT and VT

outside scope VAT and VT

Didn't find your answer?

I have a client that prepares own VAT returns and uses VT cashbook.  I have now received a copy of their VT file as part of a pre year end review, they haven't ticked the outside scope items on directors loan, interest etc, etc, so the VAT returns they have prepared have included these items within box 9 of the VAT return.  No VAT impact as all items at nil VAT but obviously Value of purchases is overstated.

Does anyone know what to do about this?  Ring HMRC VAT helpline? Will obviously tell them to amend going forwards and assume that this could put them higher on the radar for a VAT inspection but are there are any further concerns?

Just to add, they complete monthly returns as sales are zero rated - there have been 7 submitted returns.

Thank you!

Replies (1)

Please login or register to join the discussion.

chips_at_mattersey
By Les Howard
02nd Mar 2012 11:39

VAT Return errors

The provisions for correcting errors made on Returns relates to the VAT amounts, not to the value of inputs.

Notice 700/45 makes no reference to correcting such errors. I agree that if you write and notify them to HMRC, you will highlight the Client, and perhaps trigger a visit.

(I would be inclined to simply make a file note about the previous Returns, and notify to HMRC when they eventually visit, and indicate that there is no error in the VAT amount.)

Thanks (0)