VAT underpayment

[JulianHobbs]

Question:

I have a client for whom I'm currently doing final accounts. Client is VAT flat rate registered, but has paid VAT on the Ex-VAT figure not the INC VAT turnover for 4 quarters. He has now de-registered and ceased trading.

The underpayment is quite a lot of money, and obviously needs to be paid quickly now. Normally for errors of £2k, we would recommend pushing through the next VAT return as a catch up to square up the position. But this client has now de-registered, so there is no next VAT return.

I think he should write in to HMRC and explain the genuine mistake and pay immediately. Does anybody know if there are any other options - eg undoing the de-registration and filing another quarter to catch up and then re-doing the de-reg? I am trying to avoid the million questions and letters that writing in will involve (but I will probably end up doing anyway).

Any insight appreciated,

Julian
Accountant

[Zeno]

Has the final VAT return been completed?

If so, I cannot see any other way to do it other than by making a new pen pal at HMRC.

Actually, saying that, you could just submit a voluntary declaration of errors.