I have recently taken over a hair salon from a previous accountant.
My client has rented out a chair for the past two years.
The previous accountant has ignored this and for years 15-16 and 16-17 instead of recording the rented chair income as subcontractor costs they have entered it as dividends which resulted in large corporation tax bills.
They also failed to advise my client to file SATR's to declare the dividends (which is a good thing really as they didn't receive dividends!)
What is the best way to amend this? The easiest way would be to make an adjustment on the current accounts 17-18 which will show a loss this year and carry it back to reclaim CT paid in previous years. Is this acceptable or should I file amended accounts and CT returns for the past 2 years?