Hi, this is my first time to this site but I refer to it on a regular basis for advice, it's a godsend!
I am working on a VAT return and I have noticed a couple of errors from the previous return figures and I would like to correct them in this VAT return. They are nominal amounts but I want to get the records accurate.
I work on Sage (standard VAT) and wondered, can I do the corrections as journal entries and this would adjust the figures due on this current VAT return, and then just process the VAT return as normal. Or do I have to enter the adjusted amounts on the 'adjustments' facility on the return on Sage?
Also, is it ok to include an invoice that was dated from the previous VAT period but not supplied at the time and, therefore, was not recorded - how strict are HMRC with these types of things? I'm guessing it must happen alot and I have read the procedures on the HMRC website but it would be good to hear it from anyone else who has experienced the above.
I work on Sage (standard VAT) and wondered, can I do the corrections as journal entries and this would adjust the figures due on this current VAT return, and then just process the VAT return as normal. Or do I have to enter the adjusted amounts on the 'adjustments' facility on the return on Sage?
Yes, you could do journal corrections with the appropriate VAT codes and process the VAT return as normal. (You could also amend the original incorrect entry, unless it was a journal, Sage normally reverses these transactions automatically and picks them up on the next available VAT return)
Gaibeee wrote:
Also, is it ok to include an invoice that was dated from the previous VAT period but not supplied at the time and, therefore, was not recorded - how strict are HMRC with these types of things? I'm guessing it must happen alot and I have read the procedures on the HMRC website but it would be good to hear it from anyone else who has experienced the above.
Yes, it's generally ok to include the "old" invoice in the current VAT return, (and yes it happens a lot)
(If the errors/mistakes were greater than the VAT error correction reporting threshold, then you would have to separately report them to HMRC)
For further details, thresholds, time limits, penalties etc... see: http://www.hmrc.gov.uk/vat/managing/problems/corrections/correct-mistakes.htm
