A vat reg'd client, cash accounting scheme has never filed tax returns so trying to go back and prepare his tax returns for past 3 years. What is the best thing to do if the figures are different when I have prepared a reconciliation?
Ie the turnover is slightly different and the expenses are? I think I should adjust next vat return to take this into account. But do I submit tax returns based on figures now or once vat return next time has been changed?
If you are preparing his self assessment tax return, you should submit the correct figures and adjust the next VAT return to account for any discrepancies.. if the errors are less than £10k, as Les says, there is no need to make a formal disclosure.
