A client looked at the wrong figure on the Vat return (box 4 vat reclaimed on purchases) and paid that amount instead of the net amount due. This resulted in an overpayment of £44.35. I took this amount off the next vat return to correct the error but now looking at hmrc think I shouldn't have done that? Will Hmrc do anything or is this ok?
HMRC will go of the figures submitted if the figures on both returns are correct and it's only the payments that is wrong, you should be ok. the account held at HMRC will correct it's self when they post the payments.
It seems HMRC have now refunded the above overpaid amount from September. Trouble is I deducted it off the December vat return box 5 without changing boxes 3 or 4 thinking this would correct the error with the vat account held with inland rev. Now its going to look as though he has underpaid the 44.35 amount won't it? Will a letter be sent to the client asking for the amount of 44.35? Realised now I should have just left his error for hmrc to correct!
