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VAT Error Correction
Hello,
On the overview of my VAT account, FreeAgent tells me that I underpaid my last VAT return by £34.55 thanks to a mistake I made before I signed up. This means that, for my current return, the amount in the 'Balance due to HMRC' column is £34.55 more than the amount in the liability column (See attached screenshot).
I'd like to add this amount to my current VAT return but I'm not sure how to go about it - can I just add the £34.55 to all the 'VAT due' boxes on the return and add the gross amount for the invoice it came from (£287.87) to the 'Total value of sales' box? How do I account for this within FreeAgent?
For the record, I'm on the flat rate scheme.
Thanks in advance and apologies if I've confused anyone as much as myself!
Simon
On the overview of my VAT account, FreeAgent tells me that I underpaid my last VAT return by £34.55 thanks to a mistake I made before I signed up. This means that, for my current return, the amount in the 'Balance due to HMRC' column is £34.55 more than the amount in the liability column (See attached screenshot).
I'd like to add this amount to my current VAT return but I'm not sure how to go about it - can I just add the £34.55 to all the 'VAT due' boxes on the return and add the gross amount for the invoice it came from (£287.87) to the 'Total value of sales' box? How do I account for this within FreeAgent?
For the record, I'm on the flat rate scheme.
Thanks in advance and apologies if I've confused anyone as much as myself!
Simon
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Inappropriate?Simon,
Sorry to be slow getting back to you on this - we normally respond faster than this I assure you!
You should consult your accountant if you have one for definitive advice, but in a nutshell yes, you can just amend the appropriate boxes on the actual VAT Return you submit, not forgetting to keep notes about what you've done in case the VAT Inspector should visit.
(There is a way of making these corrections appear on FreeAgent itself using Journal Entries, but that's really for accountants and for errors of this size it's not really worth it...)
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