VAT not being declared | AccountingWEB

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.


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You sound like me

Constantly Confused |
Constantly Confused's picture

It is not your job to amend the client's VAT return


Thanks for the replies.

mjv1986 |

Yes it does seem wrong