How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I have a client who has been charging (by mistake) 5% VAT instead

This answer was rated:

I have a client who has been charging (by mistake) 5% VAT instead of 20% on a number of invoices (20) going back just over 4 years. This was purely a mistake as it was to do with vat on insulation and he got confused. The amount of net sales are about £150,000 so the vat owed is about £22,500. My question is can he amend his next vat return up to £10,000 then declare the balance on VAT 652 or does he have to do the whol amount on the VAT 652?
Thank you for your question.You have a choice ..you can complete Form 652 disclosing total error or write to VAT Office advising them of the error.More information can be found herehttps://www.gov.uk/vat-corrections/report-error I hope this is helpful and answers your question. If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Sorry, so are you saying we can amend his next VAT Return up to the £10,000 and then do the 652 for the balance or not? Thanks

Dave, thank you for your reply.

You can adjust your next VAT Return if the net value of the errors is £10,000 or else.
Your total is around £22,500. It is above the reporting threshold.
You should report the whole amount on Form 652.

More information on this can also be found here

https://www.gov.uk/vat-corrections/adjustments


I hope this is helpful and answers your question.