VAT not being declared
I am currently working in a small ish practice where there is one partner.
I have been working on a client who owns one company (X Ltd) and half of another company (Y Ltd) and they are trading with each other. We act for both of these companies. Y Ltd submitted it's final VAT return in September 2012 and is now ceased.
When completing X Ltd's accounts this year (Oct 2012) I noticed that there is about £100,000 worth of extra Purchases in X Ltd from Y Ltd, than there was in Y Ltd Sales ledger to X Ltd (I looked on their sage to compare). Therefore, X Ltd have claimed about £17k worth of Input VAT which Y Ltd has not declared as output VAT. The complitation is that Y Ltd has now ceased.
My boss is saying just to leave it for now but I think this is dreadfully wrong! I need to put my foot down but I obviously don't want to do it too much. Also, the boss is friends with this client which makes it a little more delicate!
I really just want advice on what I SHOULD do (I'm guessing that I should amend Y Ltd's FInal VAT return with the extra VAT?) and then if it is decided to not do that should I report this and to whom?
Any help is appreciated as I find myself in a very strange and unknown position.
- HMRC BACK AND FORTH FIGHT ON BTL PROPERTY ALLOWANCES 31 1
- Nominal Ledger 375 11
- Gave wrong info to client about tax due 541 20
- Running two businesses from the same premises 380 4
- Fines for filing 12 months of FPS on one submission 188 2
- Base value unavailable re. Capital Gain 178 2
- Old CGT loss 196 3
- Gov.UK = NOT OK! 147 3
- Paper tax return 139 4
- Start up allowance? 366 12
- Will I need to resign? 153 1
- Invest in ''buy to let'' property 1,350 41
- Penalty for late PAYE registration? 240 3
- AIA or IFA 447 7
- Surely not? 449 10
- Batch input of data to Xero - is there an app? 635 9
- Working out private usage for a Taxi Driver? 356 7
- Late Registration for VAT 359 11
- When do consolidated/group accounts needs preparing? 272 5
- Share structures 152 5