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Flat rate VAT...am I in trouble?

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    Flat rate VAT...am I in trouble?

    I just found today that I have been doing my Flat rate VAT returns incorrectly(waited till the 11th hour to do them the first time.. and followed the same format in subsequent returns without reading up). In no6. turnover excluding VAT I have been putting exactly that and not VAT inclusive. Hence have paid VAT of 12%( new company) on VAT excluded turnover . I found out my mistake after reading some previous post here. I immediately called the VAT office and they said they would send out a undisclosed VAT form to fill. I was just wanted to know if I have any reason for panic after filling the form and paying the VAT cos I know the VAT guys don't let you off easily for paying less.I just hope I don't have a VAT inspection in the next few weeks before I send the form....

    #2
    Vat

    Originally posted by aztec
    I just found today that I have been doing my Flat rate VAT returns incorrectly(waited till the 11th hour to do them the first time.. and followed the same format in subsequent returns without reading up). In no6. turnover excluding VAT I have been putting exactly that and not VAT inclusive. Hence have paid VAT of 12%( new company) on VAT excluded turnover . I found out my mistake after reading some previous post here. I immediately called the VAT office and they said they would send out a undisclosed VAT form to fill. I was just wanted to know if I have any reason for panic after filling the form and paying the VAT cos I know the VAT guys don't let you off easily for paying less.I just hope I don't have a VAT inspection in the next few weeks before I send the form....

    Depends on how long you have been trading. They're very unlikely to chase you if you're in your 1st year (then they expect the odd mistake as you're a newbie). If you're been trading for over a decade, you could be in trouble (accumlative mistakes tend to be large).
    Also the amount you own is very important. If an investigation will net them a few hundred it's not worth it but several thousand would be worth the chase.

    Best of luck the VAT bods are effectively the legalised Maffia ... Powers to break in and seize !!!

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      #3
      You went to them and volunteered the info that you had been short paying them. I think as long as they get a nice big fat cheque from you everything will be fine.

      Mailman

      Comment


        #4
        Yep, agreed - play fair with them and they are very helpful, try and cheat and they make Hector look like a wimp. You've done the right thing so should have no problems (note - this is not to be taken as expert comment BTW )
        Blog? What blog...?

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          #5
          I finally read the flat rate VAT manual yesterday and it said that undisclosed amount was less than £2K( mine is just about less) then I don't need to fill in the disclosure form, but can adjust it in some other way? I mean in my next VAt return and send them a letter. And I just filled in my quarterly return and payment 2 days ago. Can I change that with the required adjustments and resubmit today?

          Thanks for the reassuarance anyway.

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            #6
            As I understand it , if the VAT error is less than 2k, you can just adjust the next quarter returns and there is no need to notify them at all. Not sure how that works with flat rate, thought that was annual.

            No real panic for self disclosed errors even if was over 2k. They will tell you not to be a naughty boy and do it right next time. They only eat you on the 2nd big mistake.
            bloggoth

            If everything isn't black and white, I say, 'Why the hell not?'
            John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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