vat returns

vat

Didn't find your answer?

we submitted an eqnuriry via our accountant regarding VAT to HMRC. HMRC Official replied back. But our accountant was not in agreement with one particular treatment of output tax. we have asked the accountant to follow up on it. I'd imagine that would take another a couple of months or so to reach any satifactory conclusion.

As we submit vat returns ouselves and our quarterly return is near, should we make the returns according to HMRC officer's or accountant's (he didn't let us know how to proceed and is now on holiday.  By the time he returns, our returns would be late for submission deadline)

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By bernard michael
20th Aug 2018 15:46

Would you explain what the VAT question related to ??

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Replying to bernard michael:
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By Smalltalk
20th Aug 2018 15:59

Quote:

Would you explain what the VAT question related to ??

we sell standard rated items on behalf of customers who most would not be VAT registered, and customers keep 50%, we keep 50%. HMRC letter stated that we should account output tax on the full selling price, but accountant says should be on 50% of our share, as we could use the margin scheme

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RLI
By lionofludesch
20th Aug 2018 15:54

If you want to be secretive about the details you won't get a decent outcome on here.

But, if you want to play safe, don't claim. You can always claim later if the response turns out to be favourable.

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Replying to lionofludesch:
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By Smalltalk
20th Aug 2018 16:10

as the whole enquiry is not possible to be explained in just one simple post, and it's still ongoing. therefore i tried to pick up the brains here and see from others experience which would be the best option to go ahead for now. i would intend to go with HMRC for now myself and make any adjustment later on.

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Replying to Smalltalk:
By Duggimon
20th Aug 2018 16:42

Well the issue is that nobody here wants to advise you without first forming an opinion on whether they agree with your accountant or with HMRC.

If we take that off the table and consider it unknown/unknowable then the prudent approach would be to pay VAT per HMRC and correct it at a later date in your favour if your accountant is proved correct. Doing it the other way round could leave you worse off.

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Replying to Duggimon:
chips_at_mattersey
By Les Howard
21st Aug 2018 10:12

I agree. Follow the HMRC ruling, and adjust later.
In fact, if you ignore their ruling, arguably, you will submit Returns which you know to be wrong. HMRC can then issue penalties for 'deliberate' errors at 70%.

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