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!
- New Enterprise Allowance 41 1
- VAT Notice 700/64 - claiming VAT on motor repairs 42 1
- Is this a qualifying loan for interest deductions? 23 1
- two business from one premises 168 3
- VAT transfer on going concern on incorporation 35 1
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 234 4
- HMRC property income enquiry 379 9
- 10 Worst xmas presents for an accountant 303 4
- Merry Christmas 94 2
- THEATRE SHOW - HIRE - VAT PAYABLE ON TICKET SALES 70 3
- New Incorporations - ERTNAC hoax - anyone else seen this? 1,068 12
- Anyone else still working this week? 410 13
- Childcare vouchers 345 7
- LTD home office - would HMRC seek to disallow 1,419 9
- Using home as clients registered address 135 3
- Client being taken to court and really do not know what to do 528 12
- Section 165 TCGA 1992 - time limit? 110 2
- How much does the company pay 713 30
- AIA 290 18
- Van Benefit in Kind Query 179 5
- Accounting referance change & deficient accounts. 506
- corporate hierarchy 469
- Advice - 321
- Anyone had HMRC refusing to act on EPS database glitch? 273
- WWOOFers 263
- The booking.com con 245
- Art Gallery - Splitting a property between business and personal use 240
- Cocaine anyone? 227
- Tax liabilities in USA for warehoused products 217
- UK State pension paid in NZ 177