Prepare a set of accounts 01.05.16 to 31.03.17 and include these figures along with the original y/e 30.04.16 accounts on the 2017 TR and submit this as an amended TR.
Complete the 2018 TR with the year end 31.03.18 figures on
That should really have been picked up in the audit!!
£38116+£60006 = £98122 - £11100 = £87022
£5000 @ 0% Dividends rate
£4984 @ 7.5% Dividends rate
£27016 @ 20% Basic rate
£50022 @ 32.5% higher dividends rate
That is what I get!
Linneweber Case update
I have just received an article, dated October 2010, from one of my clients in relation to the Linneweber case. It states "Clubs which have submitted an appeal, under what has become known as the 'Linneweber case' should have received, or will be receiving, assessments from HMRC. These assessments will be accompanied by either a cheque or a credit being placed on the Club's HMRC account. The amount will relate exactly to the figure which the Club orginally claimed. HMRC has decided to pay out these claims pending a final appeal which is set to be heard at some future date. It is widely suspected by most commentators that this final appeal will not be successful for HMRC. However, due to the fact that the payments are being made on the basis of 'protective assessments', all Clubs receiving refunds should not that in the event of the appeal being won by HMRC, the refunds will have to be repaid. We suggest placing a 'provision note' in the Club's accounts to this effect.
We are advising all Clubs in receipt of a refund to bank the cheque which arrives from HMRC, or in the case of a credit to offset this amount against future VAT payments. In either case it is important to submit a further claim for interest owed on the amount claimed. This involves writing a letter to HMRC quoting your VAT number, their letter referencenumber and stating that since the original VAT payment was made in accordance with HMRC guidance, the Club is entitled to ‘official’ interest on the repayment. You should not use a ‘Notice of Appeal’ form to submit this interest claim. The Club is not appealing the amount paid; it is simply requesting payment of interest.
It is disappointing to note that HMRC has not applied ‘official’ interest to the amount being repaid. Over the period that the claims were made, interest rates were higher than they are today. We have received advice that interest on these claims could be calculated to as much as 37% of the final amount. Clubs will appreciate therefore that it is well worth submitting a further claim for this interest."