One of my clients has an o/s customer invoice from November last year - as it was almost the only one with an o/s balance I queried it with him - he advised that the company went into liquidation. Im thinking VAT relief but then he tells me that no goods were supplied so they didnt actually owe him anything!! Why he gave me the invoice I have no idea. Just wondering the best way to deal with it given the passage of time. Should he be talking to the VAT man as this was clearly an error on his VAT return (which meant yes he paid them when it occured but now means he will get even more of a refund than expected!)
Or should I just get a credit note but warn that in the event of a VAT inspection it could be picked up and he could be fined?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Personally I would raise a credit note, he should have done that at the time really. If there's a possible penalty implication you could code it T9 so that no VAT is reclaimed. Can you help me understand how a penalty might be imposed, would it be for failing to correct the error earlier? As far as i can see its HMRC that have benefited, not the client.
Hi John
He is now trying to say he told me that the invoice was 'cancelled'back in December but I fail to see how he would remember that when he cant recall the stuff we talked about last week. Then he tried to send me a 'copy of the invoice' which miraculously turned out to be a credit note. But he didnt send me that back in 2013 and Ive checked my blitherin emails. Ive sent him info on proforma incoices for future.
I know that HMRC have benefitted but now of course, after 12months they are having to pay it back to him so I was a bit worried that he would be penalised because it should have been sorted at the outset or at least reported in an earlier VAT return. I probably wouldnt normally be too bothered but he is due a rather large refund! Plus its after 3 very frustrating weeks of dealing with him - if I just did the VAT return from the pathetic 5 bits of paper he gave me he wouldnt be getting a refund at all (he missed his import docs off and a million other one bits too). I will be passed caring tomorrow as I go sod the work (well apart from a few nice clients) to - mega bake lady and roll on Christmas.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ha John and that isn't even the half of it!!!! Think they've all had their numpty heads on this last 4 months, I'm exhausted with it. But my first and best customer have given me more work, wish I could just live off what they give me. I planned, with military precision, my next four days out to fit all the stuff I need to do before Christmas then just got up this morning and realised I've only got 3 days left, oops. Hysteria hasn't set in ....yet. Sod the work, baking comes first.
Have a fabulous Christmas, see you on the other side.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Theresa
Life is too short to make any kind of pastry (these days!) - even the professionals say that. Although that begs the question - who is making all the pastry! Ive never done anything gluten or sugar free - tried to find a decent recipe for the latter for a diabetic but gave up as running out of time!
