So I have been working for a client since September and completed two VAT returns. One the second return thay are due a quite substantial VAT refund (over 100K), so unsurprisingly this has prompted a visit. This VAT return is an exception to their normal values as it includes a few invoices relating to equipment and vehicles purchased for the business.
My concern(s) are, what if they find something I have unwittingly done wrong. I have only ever filed these two VAT returns and although I checked them I am really worried that I have done something wrong.
If you have all the relevant invoices ready for the inspection, then that it is your main preparation. If there is background information, then that will also be helpful; for example - what will the equipment and vehicles be used for? Who are the staff who will operate or drive them? You try not to worry; as long as you have done your job well, the responsibility lies ultimately with the client. And do post about the outcome of the visit!
Thanks for your response. I am going to go through the return and double check I have everything relevant. Do you know, if they find something incorrect would they accept an adjustment on the next return or would it incurr a fine? Also can I be held responsible for any errors?
I will let you all know how it goes, fingers crossed.
The taxpayer is responsible for any errors. If you have made mistakes, then that is between you and your client. I would not expect a client to expect perfection! Small adjustments/errors would be made on the next VAT Return. Any larger errors may incur a penalty, but that can usually be cancelled or reduced.
Thankyou so much, you have really made me feel a bit calmer about this. Hopefully the inspector won't find anything to moan about and it will all be fantastic! :)
The inspection is next Thursday, I will let you know how it goes.
Would it not have been better checking the return before submitting as any VAT return reclaiming £100k is bound to result inspection if is normally in a paying position?
If there are any errors the client will be responsible as they approved the return but if they relied on you to prepare then they will blame you. Hopefully all goes well though and as said below if the invoices support then nothing to worry about.
Well the VAT inspection went pretty well, I'm still in one piece and am just glad that its done.
The Inspector picked up on one thing in the VAT return which she is going to adjust for within her records, however I need to correct my VAT return on Sage. Unfortunately i have reconciled my VAT return in Sage, is there any way to make adjustments to the figures once it has been reconciled?
The adjustment is to the Total Value of Sales figure (box 6) and will not affect the overall repayment amount. Do I really need to make an adjustment?
