I am trying to submit a VAT return for one of my clients and it keeps giving me a warning on the HMRC website about the amount of vat submitted at this rate exceeds the expected rate but I have checked all the client invoices and can't see a problem, the same for the purchases. Should I ignore it and submit anyway? I've tried calling them but can't get through at all.
Thanks
Sam
-- Edited by Samilou67 on Thursday 8th of August 2013 10:16:59 AM
If you submit it as it is your client will likely get a letter from HMRC asking for more information. Normally that message appears when the box 6 & 7 figures don't make sense with boxes 1 and 3.
To check take box 6 and times by 20% - your box 1 figure should be this amount or smaller. Same process with boxes 7 and 3. If either of the calculations work out bigger then your problem is in that group of numbers somewhere, the VAT amount on an invoice can't be correct.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
Thanks, I have checked and they are about 50-70 pounds out each way, what is the quickest way to remedy this? Sorry for sounding stupid it's been a manic day and I'm stressing so much.
Of course what you should do first is track down which particular invoice, purchase or sale is the source of the error and correct that using File > Maintenance > Corrections.
But it's the 7th, and I assume your return is due by midnight. And the sum concerned is less than £100. And the way I've heard it Boxes 6 and 7 are only used for statistical purposes; it is not like it affects the actual tax to be paid. So, to be frank, what I would do is subtract whatever it is that needs to be subtracted from Box 6 to make Box 1 no more than 20% of it, and likewise with Box 4 and 7, and submit your return.
Then hunt down the error when the pressure is not so intense, and correct for it in the next return.
I feel kind of ashamed of myself when I compare my reply to BudgetB's.
Blame it on the bitterness consequent upon once being judged to be in default because of a VAT submission received at, I kid you not, oneminute past midnight, on the 7th in circumstances not so different to Samilou67's.
I am trying to submit a VAT return for one of my clients and it keeps giving me a warning on the HMRC website about the amount of vat submitted at this rate exceeds the expected rate but I have checked all the client invoices and can't see a problem, the same for the purchases. Should I ignore it and submit anyway? I've tried calling them but can't get through at all.
Thanks
Sam
I don't want to appear rude - but could you delete your attachment and replace it with this one. I don't think it is a wise idea to have the company name in the file you upload but even more importantly you can see the name of the company in the screen capture. Even the VAT number would give me the company name using a site like http://ec.europa.eu/taxation_customs/vies/vieshome.do . I know there isn't any financial details in the picture but I don't think it is a good idea. This attachment has the relevant details cropped out.
When you run the return, there is a print box that allows you to print the "detailed" report. This breakdown every figure on the summary.
It will give you a breakdown of T1, T0 etc.. and it allows you to go through each net, and match it to a VAT figure.
Also, if you are using T20 for reverse charge items, they wont appear in box 6 - this is because its the wrong code to use. Its confusing, I know.. but T24 is the correct reverse charge code.
I'll find you a link to a thread from a couple of weeks ago about the whole reverse charge issue. Its handy to know!
