Don’t waste your money – make VAT easy

Jeff is a new client to us, he came with a VAT investigation. Of twelve quarters all are wrong.

  • First one claimed back more VAT than possible with the VAT rate in force that quarter.
  • Second one the unqualified accountant failed to take 1% discount on the first year of the flat rate scheme (and put the net sales in box 6).
  • Jeff overpaid his VAT for the next three quarters.
  • Sixth quarter client “did” himself and claimed a rebate under the flat rate scheme.
  • Seventh quarter client put same figure for input and output VAT for no reason I can discern, and
  • for the last five quarters the client has used the wrong flat rate.

Overall it is quite a large underpayment and the penalties are going to be substantial.  Better to get it right first time.
5 June 2013