The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Newly "discovered" old invoices - presume not considered a VAT "error"
Post Info TOPIC: Newly "discovered" old invoices - presume not considered a VAT "error"
AICB


Senior Member

Status: Offline
Posts: 244
Date:
Newly "discovered" old invoices - presume not considered a VAT "error"
Permalink  

A client recently handed me over a hundred un-processed supplier invoices which were raised during the previous VAT period. The total input tax comes to over £2600. It seems to me that the obvious thing to do is simply to add the purchase and VAT figures to the current VAT Return. 

The VAT Man wouldn't count these additions as an "error", would he?

__________________
Andrew
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Hi Andrew,

Yes do that, you are allowed to amend errors like this of up to £10k nowadays without having to notify hmrc.

Rob

__________________
Rob
www.accounts-solutions.com
AICB


Senior Member

Status: Offline
Posts: 244
Date:
Permalink  

Lovely!
Thank you, Rob.


__________________
Andrew
littlebookkeeper


Senior Member

Status: Offline
Posts: 155
Date:
Permalink  

Hi Andrew,

I am not an expert on VAT so don't know what a VAT inspector would say but from an accountant/auditor perspective alarm bell are ringing.

100 or so invoices seems a bit excessive to have been missed the previous quarter. What were the clients reasons for not putting the invoices through? Don't think this is good practice. It wasn't at the year end by any chance? A company/business in financial difficulty may withhold invoices at the year end in order to show a better picture in the accounts, maybe to reduce a loss?


You should at least query it anyway.

Carole



-- Edited by littlebookkeeper on Tuesday 3rd of August 2010 04:45:04 PM

__________________
AICB


Senior Member

Status: Offline
Posts: 244
Date:
Permalink  

Yes - it was at year-end, and I'm taking over from a previous bookkeeper. The underlying reason would seem to be sheer lack of procedure (or any respect for anything to do with accounts, for which he also employs a top flight accountant). His primary filing system appears to be the floor of his 4x4!

But MLR rules, and I, at least, have a system for that!

My fanciful aim is to introduce him to a system for retrieving invoices weekly, and in a way that doesn't get in the way of his doing his work. Time will tell .... this account is certainly costing me a huge amount of extra time which wasn't estimated when I was first introduced to it.



__________________
Andrew
littlebookkeeper


Senior Member

Status: Offline
Posts: 155
Date:
Permalink  

I would also let the accountant know of these invoices if they don't already, may get you brownie points and they will need to accrue for these invoices in the previous years accounts.

Carole

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Newly "discovered" old invoices - presume not considered a VAT "error"
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About