Indirect Tax--How to adjust for errors in Output & Input Tax within current period in Tax Return?

SteveMerrifield

Hi,
I'm self-studying level 3 and I'm stuck on how to put over and under payments in the current period into the tax return.
Am I right in thinking that if there is:

• An over payment of Output Tax you can make a subtraction in Box 1.
  
• If you underpaid Output Tax you make an addition in box 1.
  
• An over payment of Input Tax you can make a subtraction in box 4.
  
• An under payment of input Tax you can make an addition in box 4.
  

I'm sitting a 2015 exam using the Osborne tutorial finance act 2014--it doesn't explain it well enough for me, and the exercise answers seem to contradict themselves? Although could well be me just not getting it.

Any pointers would be great!

Cheers
Steve

rakeshsuwal

You are right mate. Good luck.
also to add, don't forget about bad debts which are 6 months or older only to claim by adding it in BOX 4.

SteveMerrifield

Hi,
Thanks for confirming and the pointer. That was a big help.
Cheers
Steve