Cookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.
Changes to Correcting VAT Errors
Newsletter issue - June 08.
When you make an error in your VAT return, you can include the under or overpayment of VAT in your next VAT return, as long as the net error is not more than £2,000. If the VAT difference is more than £2,000 you should write to the VAT office and confess your mistake. We can help you with this as its essential to get the error pinned down exactly. If the error is a net underpayment of VAT, the VAT office will normally reply with a demand for interest on the late paid VAT.
The good news is for accounting periods beginning after 30 June 2008, that's your next VAT quarter, the error-reporting threshold is being increased dramatically. The new limit is the greater of £10,000, or 1% of your reported turnover for the VAT quarter, subject to a cap of £50,000. So VAT errors within this much higher limit can be included on the VAT return without having to write to the VAT office.
If you have overpaid VAT in the past, perhaps due to a misunderstanding over the correct VAT rate to apply to certain goods (such as tea cakes), you can reclaim that overpaid VAT from HMRC. The VAT office previously insisted that you make all such claims within three years of the end of the period in which you made the mistake. This three year cap was introduced on 1 May 1997 for purchases and on 4 December 1996 for sales, but the House of Lords has ruled this time limit is illegal. Now you have until 31 March 2009 to reclaim overpaid VAT from periods before 4 December 1996 and to reclaim VAT on purchases for periods prior to 1 May 1997. If your business is in this position we can help you to draft the claim.
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
Please complete our form
to request a callback
Competitive fixed quotes
for agreed services
Increase your profit and
reduce tax liabilities
Expert advice for your
business size
