VAT returns not done
Wow, this is new
Thought I would sit down today and do the books for a new client picked up this week as they have all arrived, two years worth he is behind but all good!
Until I find the VAT records and returns that is....
He has dilligently prepared them all (not sure if at the time or just recently when getting the records up to date) going back 2 + years BUT has never submitted a single one, instead he has been paying the HMRC assesments that have been arriving.
Problem is the assesments are far lower than what his calculations are, I make it £10k+ shortfall from my initial review.
I am not yet appointed to act for VAT and haven't applied to be as he has always done his own returns (or so I was told...) so an immediate "holding" conversation with HMRC is not possible.
Before I launch into this one, my proposal would be to approach this as follows;
- Discuss with the client WHY he has not submitted the returns, (I suspect cashflow based on his description of where he is at financially)
- Get appointed with HMRC ASAP and arrange for the returns to be submitted (will he / I be able to do all the last 10 returns in one go online?) although owing to the amount I suspect it will be a voluntary disclosure in full as cumulatively it is £10k+
- If he is OK for me to submit and disclose in full now do I need any SOCA reporting OR is that dependant upon his answer as to why he has not submitted any returns.
- Obvioulsy there will be some intererest and penalties - which will need negotiating - when this is all resolved, but I will approach that later.
- And yes - I will insist on some fees up front on this one......
Any experiences readers could pass on before I approach would be most welcome as a sense check!
- Setting up PAYE scheme without UTR 186 4
- VAT Query 147 2
- Overlap relief 688 17
- Budget 2015 - take two 148 2
- Sacked my first client 589 14
- Do you have to declare business expenditure on a personal credit card on your P11D? 381 9
- Accounts note disclosure - Directors 191 4
- CIS. Why is it so complicated? 2,243 24
- Share transfer question 246 9
- Director needs to withdraw 45k lump sum from company 600 11
- Trades and deadlines 116 3
- How to pay national insurance 640 18
- New Website Look 1,065 29
- Accounting for buying off bank 252 11
- Indemnity question re IR35? 220 5
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 152 4
- Marketing and email surprises 341 7
- Am I too soft? 453 13
- HMRC & daft penalty 2,220 16
- Humour me...worrying without need? 308 2
- Has anyone been affected by the RBS payment breakdown? 424
- Straight line write off of Purchase Goodwill ??? 417
- WIP Software 284
- FRS 102 compliant illustrative accounts for an insurance company 283
- CGT, PPR and transfer of equity to spouse. 216
- No payroll scheme in place 213
- Do subcontractors on work for residential (student accomodation) construction 193
- Software recommendations 193
- Is there anything wrong with this? 184
- Free project management software with Gantt charts, preferably on-line 182