VAT Return
mge
Registered Posts: 94 Regular contributor ⭐
I will be taking this unit fairly soon, and would be very grateful for some help with regards to the following point:
Do the following adjustments occur in box 1 or box 4 on the VAT return?
- correction for overpayment in previous period/s
- correction for underpayment in previous period/s
- correction for overclaim in previous period/s
- correction for underclaim in previous period/s
(where the net error is below the threshold for voluntary disclosure)
Any help would be much appreciated.
Do the following adjustments occur in box 1 or box 4 on the VAT return?
- correction for overpayment in previous period/s
- correction for underpayment in previous period/s
- correction for overclaim in previous period/s
- correction for underclaim in previous period/s
(where the net error is below the threshold for voluntary disclosure)
Any help would be much appreciated.
0
Comments
-
Hi mge this link might help
http://www.hmrc.gov.uk/vat/managing/returns-accounts/completing-returns.htm#40 -
Hi A-Vic. Many thanks for suggesting looking on the HMRC site. I found the following paragraph, which helps a little:
"Then, make this adjustment to either Box 1 or Box 4 on your return, as appropriate. For example, if you discover that you failed to account for VAT due to HMRC of £100 on a supply that you made in the past, add £100 to your Box 1 figure on your return."
However, the problem is that in the Osborne book, most of the questions simply state 'overpayment' or 'underpayment'. They don't tell you, for example, whether an overpayment is due to paying too much output tax or not claiming enough input tax.
Osborne generally seem to adjust any underpayments in Box 1 and overpayments in Box 4. However, this doesn't seem to tally with HMRC if the underpayment came from claiming too much input tax, or the overpayment came from paying too much output tax.
I'm just hoping that the questions in the exam are a little clearer on this matter than the ones in the Osborne book. Thankfully, the ones in the practice CBA do seem to be0
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