Q:
Hello there,
I submitted my first Flat Rate VAT return at the end of last October. Unfortunately, due to some confusion between myself and a third party company I use to do my invoicing for me, the “Total VAT Inclusive Turnover” I submitted in Box 6 of my VAT return was £1,779.96 higher than it should have been. Using the Flat Rate applying to me, together with my 1% discount for the first year, of 10.5%, this meant I made a VAT overpayment of £186.58.
I’m currently in the process of submitting my second VAT return, and am aware I need to adjust the Box 1 total downwards by £186.58 to correct my original error. What is not clear is whether or not I should adjust the Box 6 “Total VAT Inclusive Turnover” figure down by £1779.96?
Ultimately, I could phone HMRC to find out, but I’d prefer to get an independent answer to this question, if possible.
Please can anybody here offer any assistance?
Cheers.
James
A:
Hi James
Yes, it is necessary to amend any errors on VAT returns, which includes the box 6 value. I know that the HMRC notice about correcting errors 700/45 http://tinyurl.com/yly6sea doesn’t address this specific issue in any detail, but mistakes in boxes 6, 7, 8 and 9 are “errors” and should be amended.
If you are adjusting an output tax or input tax error from an earlier return on a current return, then you can adjust the corresponding box 6 – 9 value at the same time.
Marie