Friday Puzzler

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slackda
slackda Registered Posts: 460 Dedicated contributor 🦉
Its friday and Half Year reporting so forgive me for being a bit frazzled.

Did the Following VAT return a couple of Months Back.

We had a massive credit note to a Customer and a corresponding Credit Note from a supplier.

Sales VAT (14885.69)

Purchases VAT (16373.41)

So my thought was that HMRC owes me £14885.69 in VAT for the refund that i have given to the customer , but as i have also been refunded by my supplier i now Owe the HMRC £16373.41 in VAT netting the two off i Owe HMRC £1487 .

So i bundled off a cheque to HMRC only to receive two refunds into the Account Via BACS.....i Assume one cancelling my cheque and one to process the return.

so am i being a complete muppet and my calcs are wrong and the refund is correct or has the Online VAT return gone crazy and sent me money that im not due??

Comments

  • Dcollins
    Dcollins Registered Posts: 179 Dedicated contributor 🦉
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    Your calculations seem OK. so it does seem like something's gone wrong. If it were me, I'd check that the VAT return was correct (ie. that the amounts were entered as credit notes, not invoices), in case it's gone through as a repayment return. That would be the most likely cause. Box 5 figures on repayment returns don't have any symbol indicating that it's a negative value.

    But HMRC have been known to make mistakes too...
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
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    I'd say typical HMRC, lol.
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