Good evening, I am just looking for some guidance please? I have just taken on a client whose year end I am to complete tomorrow - not a problem. The accountant has forwarded me the year end adjustments for the previous year (2013/14) to input, again not an issue. My problem lies where the client appears to have entered expenses for 2013/14 after the year end had been closed off. These were entered significantly later. It has been suggested that I adjust the date on these entries to the first day of the 2014/15 year with a note to the accounts to explain that they belong to the previous year. My worry is, how does this affect the VAT as I assume it would have been flagged up as an unreconciled item on the next VAT return and included in those figures, but having changed the date to the 1st of the new financial year during a dummy run, these items were then flagged up as unreconciled again? Will this have any bearing on VAT returns already submitted?
My other issue is I need to calculate the VAT on fuel using the advisory fuel rates as provided by HMRC. The problem is, for one employee I have just been given an annual figure and have been told that they are unable to break the mileage down. Can I just use the most up to date rate for the mileage or is there a way I can calculate it quarter by quarter?
If you reinstate them as the old date, you should find they pull into this years PL as a balance brought forward, and the BS will show a prior year figure.
Regards the fuel VAT, you will have to look at how the rate changes over the year, if at all, and take a view.
