Due to a new computer system, our last three VAT returns have been incorrect, as Boxes 6 & 7 have only shown UK sales / purchases.
All other boxes have been correct, so the actual VAT paid has been correct and Box 8 agrees to EC Sales List.
Does this have to notified to HMRC as I notice the form VAT652 only relates to actual VAT?
Replies (14)
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vat 652
if there is no under or overdeclaration of vat there is no vat effect and the tax man will only be interested if there is an ERROR NOT CAPTURED BY vat online filing.
box 6 &7
if box 6 is wrong then online filing will alert you since only net (80%) vatable sales should be shown in box 6(i.e.100/20 of vat due in box 3)
this test will tell you if your vat due is correct.
any other error will be a computer system/accounting-reporting error, and other than ec sales hmrc are not interested in output/input reporting errors-just keep a note of your differences/reconciliation should hmrc ask you.
if box 7 is wrong which is more likely there is nothing to report provided you claimed back the correct vat.
The last Vat Return should run for the Whole FOUR VAT RETURNS and deduct what has been declared then that last Vat Return will show the correct figures and if you ever did get a HMRC visit or get asked why the difference in your previous returns, you can of couse explain and also point out that you have made the adjustments in the last Vat Return.
Mechanism
I'm not sure that there's a mechanism for - or a requirement to - correct box 6 and 7 via subsequent returns.
The advice on errors only covers the tax itself.
If I was minded to correct the figures because the errors were huge, I might just write a letter to HMRC saying "look, the box 6 and 7 figures should have included boxes 8 and 9 for these periods but they didn't; the correct figures should be ..............." and leave it at that.
If the corrections are big, they'll distort the figures on the return you correct them on. If the figures are small, well, does it matter ?
Mechanism
I'm not sure that there's a mechanism for - or a requirement to - correct box 6 and 7 via subsequent returns.
The advice on errors only covers the tax itself.
If I was minded to correct the figures because the errors were huge, I might just write a letter to HMRC saying "look, the box 6 and 7 figures should have included boxes 8 and 9 for these periods but they didn't; the correct figures should be ..............." and leave it at that.
If the corrections are big, they'll distort the figures on the return you correct them on. If the figures are small, well, does it matter ?
Interesting. I didn't write this.
Hi There
Just came across this thread as have a similar situation of omitted zero rated sales and zero rated purchases in box 6 & 7 respectively for already submitted returns.
Did you send a letter to HMRC to correct the box entries you had? Did they reply to confirm? Any issues?
Thanks in advance
I'd probably ...
If they are as big as you imply, I'd do the same.
I didn't write this, either.
I have just realised that I have missed a zero in my box six from a year ago, registering sales as £200k instead of £2m. Havent heard from HMRC since - should I fill out a VAT 652 or leave it and play dumb if they come for a visit (which is likely as it will seem that we have made a huge loss and paid too little VAT).
There was no over/under declaration of VAT.
I have just realised that I have missed a zero in my box six from a year ago, registering sales as £200k instead of £2m. Havent heard from HMRC since - should I fill out a VAT 652 or leave it and play dumb if they come for a visit (which is likely as it will seem that we have made a huge loss and paid too little VAT).
There was no over/under declaration of VAT.
So what will you put on the VAT652 ?
It only deals with over and under payments.
You either write to the VATmen to ease your conscience or forget it.