Application of vat adjustments
Where suppliers remain unpaid in excess of 6 months of them becoming due for payment HMRC require an adjustment to the vat return in order to reduce the input vat previously claimed. Can anyone confirm the adjustment is only to box 4 on the vat return and that there is no requirement to adjust box 7 as well? (Supplies are for UK only from a UK supplier). Does anyone know of any links to HMRC guidance or similar on this subject?