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VAT: missed self supply and barter transactions

Likely HMRC response?

I have a client for whom the bookkeeper prepares and submits VAT returns.

I've recently realised that over the past couple of years there have been self-supply and barter transactions that should have been recorded in the VAT returns, resulting in underdeclared VAT.

Any idea how HMRC will respond? I've sent them a full and detailed disclosure. 


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17th Mar 2018 19:42

I'd be very surprised if you weren't asked to break that down quarter by quarter and pay the interest on that. Almost certainly a penalty too, though volunteering the information should keep that on the lowest rung of the ladder.

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17th Mar 2018 20:31

Excellent answer above. Regarding the penalty probably worth thinking ahead and evidencing how this error can’t occur again due to new processes put in place. That could have any penalty suspended.

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18th Mar 2018 10:36

I assume the annual accounts are OK. HMRC may ask

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18th Mar 2018 19:11

If HMRC argue for a penalty for 'careless behaviour,' then request a suspension of the penalty.

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