Hi all, new to this forum and great to see a thriving community.
I have just submitted an MTD Vat return and realised that we have not included the usual management charge to our other company for an element of staff costs. To save time I'll clarify that we do have to charge VAT on this even though it is for payroll, nics and pension costs.
I have opened the period (following submission) and added the management charge invoice dated 31st March with the view to amending the return and resubmitting but see that this can be onerous.
Does anyone have any views on the best way to proceed?
As it is an elective invoice and we could charge it at year end would it be wrong to delete it or raise a creidt and close the period to match the original vat submission or can I just leave it in the period, close that period again and list it on the next quarter's return or raise a credit and so leave the amounts the same as on the return then invoice at a later date?
I can't find any advice about this anywhere even on HMRC site since the filing due date is not yet passed and payment is not yet due so to correct and pay the extra now would mean that there was no late notification and no late payment but it would show that an error was made - so would there be a penalty?
Possibly we could simply make an overpayment on account?
Closing the period whilst the invoice is there won't bring it forward and your VAT will be out. I suggest you change the date of the invoice to the first date of the new period, then close the quarter vat return, then redate back to the original invoice date. It should then pick it up on the next VAT return.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
