Ok, so this one is a bit of an odd query, so hopefully someone can help me!
One of my clients runs a truck stop. When she puts sales through the till, it is just a number depending on if it's food, drink, overnight stay, parking etc. However, occasionally there has been the odd mis-key. I just get the end of day breakdown so for instance I have one that says D01 (which is meals) as £2048.60. Now, as this is the whole days D01's I have no way of knowing how much it actually should be!
I have her bank statements but she doesn't have a separate bank account and she has always dealt in cash so a lot of the supplies have been paid in cash, and not all of the cash has gone directly into the bank account each day.
So, my question is, do I just put the sales receipts through as is (bearing in mind they go back to Sept 13!) and she'll just have to take the fall for the VAT returns or do something else that I haven't thought of yet? (Ideas welcome!)
The other thing is, she is VAT registered and has no idea how much VAT she should be paying as she has just waited each time to get a letter from HMRC telling her she needs to pay x amount and then paying it blindly. However, the way it's going with the mis-keyed amounts that may have been for the best!
-- Edited by choccly-pops on Monday 1st of December 2014 02:34:18 PM
You can only go with the information you have, so if the till reading says 2048 for meals, so be it. I'm assuming that everything on that list is vatable anyway, apart from cold food taken away. By the sounds of it, you don't have a breakdown of the split though.
That's right John, no breakdown. I believe everything in her place is vatable as it's hot food that's served on the premises (no takeaway food) other than confectionery.
Hmm ok, so I guess I have to be the bearer of bad news, that she needs to pay a lot more VAT or give me the correct takings amounts for the last year!
I misunderstood your question slightly, sorry. If the over-ring is blatantly obvious eg, average takings £300 and one day is at 2048.60 as an example, then you could take mark it down to one of the normal higher ones. I would make notes to each that you do and get the client to write the reduced amount on each one, as well as signing a disclaimer that the figures you've used for these are estimates erring on the side of caution.
I'm somewhat surprised your client hasn't already done that, because not only is she subjecting herself to an increase in VAT, but also her profits will be over inflated, subjecting herself to more tax.
Ah ok, that will make it a bit better then, yes it is blatant as it is rarely over £500 except on these days where there is a massive over-ring! Am I able to let the tax man know that it is an estimate?
Ah ok, that will make it a bit better then, yes it is blatant as it is rarely over £500 except on these days where there is a massive over-ring! Am I able to let the tax man know that it is an estimate?
I don't think you can on the VAT return, as it's submitted electronically online. I will be doing a return at the end of this week so I'll let you know if you can.
