VAT Annual Accounting - Payments on Account

{sigh}

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How do HMRC work these out ?

New company, one return submitted so far with a liability of just over £4000.  The first AA return will be for nine months so we looking at a liability of £12000, maybe £15000 tops.  HMRC have set the POAs at £6760 a month.

I reckon £2000 would be nearer the mark.

Needless to say, the director will be more than chuffed if his business takes off so well that HMRC are right.

Replies (6)

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chips_at_mattersey
By Les Howard
14th Feb 2019 16:13

Ask HMRC to reset the monthly interim payments, and explain why.

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Replying to leshoward:
RLI
By lionofludesch
14th Feb 2019 16:24

Thanks Les - I've done that, but I do feel that they shouldn't be so far out.

Having said that, the director hasn't said anything. Possibly (I mean "probably", really - or even "definitely") because he hasn't bothered reading the letter.

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Psycho
By Wilson Philips
14th Feb 2019 16:43

I'm sure that you'll have checked but are you certain that the payments are monthly and not quarterly?

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Replying to Wilson Philips:
RLI
By lionofludesch
14th Feb 2019 16:55

Wilson Philips wrote:

I'm sure that you'll have checked but are you certain that the payments are monthly and not quarterly?

Yes, I've checked and it did occur to me that HMRC hadn't.

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By andy.partridge
14th Feb 2019 17:02

Is this because the client got over-excited when answering the expected turnover figure when they first registered?

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Replying to andy.partridge:
RLI
By lionofludesch
14th Feb 2019 17:17

[chuckle]

No. If anything, it was understated, though not by a huge amount.

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