View Full Version : Hmrc
SoleTrader-IT
7th May 2010, 20:29
Whats the Margin of error like for HMRC
Im taking a very small company.
Earning monthly net profit of £1500 ish
gouldie0
7th May 2010, 20:31
Can you elaborate a little further?
SoleTrader-IT
7th May 2010, 20:33
Like if im not sure on a few items were taking a fifty poun swing.
Would they fine me?
brownie
7th May 2010, 20:51
Are you drunk or tired?
What are you talking about?
Fernhurst Solutions Ltd
7th May 2010, 20:57
Are you drunk or tired?
at the end of a long busy week ..... :|
SoleTrader-IT
7th May 2010, 20:59
Sorry.
I have company making net of £1500
Cant really afford to outsource yet but is a MUST soon.
I am 99% happy with VAT but worry to much i feel.
WHat is the margin of error like?
gouldie0
7th May 2010, 21:00
So what are we talking about here - VAT or a tax return?
Why would you want to run the risk of getting on the wrong side of HMRC?
brownie
7th May 2010, 21:03
I'm off for another glass of red.
gouldie0
7th May 2010, 21:04
I'm off for another glass of red.
Facejacker for myself - Talk to me!
Fernhurst Solutions Ltd
7th May 2010, 21:11
Sorry.
I have company making net of £1500
Cant really afford to outsource yet but is a MUST soon.
I am 99% happy with VAT but worry to much i feel.
WHat is the margin of error like?
I've got to say I'm still not 100% sure what you are asking?
brownie
7th May 2010, 21:14
He's been ingesting the plant food.
Jenni384
8th May 2010, 17:59
Taking a wild stab in the dark about what the question was, this (http://www.hmrc.gov.uk/about/new-penalties/index.htm)might be a useful link to read.
HMRC will not penalise you if you take reasonable care to get your tax right.
Taking reasonable care includes:
keeping accurate records to make sure your tax returns are correct
checking what the correct position is when you don't understand something
telling HM Revenue & Customs (HMRC) promptly about any error you discover in a tax return or document after you've sent it
Now, where's my glass of wine?
What a strange post indeed.
If your company is making £1,500 per month (turnover) then assuming you are VAT registered and this sum has come from your sales then you will have to pay to the HMRC all the VAT paid to your company on this £1,500.
So if this is your first month and you have turned over £1,500 from sales then I assume VAT is included in this figure? if so deduct it and pay it when the quarter is up..
I think what you need is a good accounts package if you are stuck as this will break down the VAT you have paid and VAT you have received, and what you pay is the difference between Input & output.
I think I need some brandy myself...
Hi SoleTrader-IT
Do you have an accountant/book-keeper?
Maybe consider booking yourself a free half hour session with one?
The one who understands your question, is the one you should be with.
(That's if you haven't got one already).
:) x
Paul Norman
9th May 2010, 16:30
You have to be as exact as you possible can. I would say that HMRC do actually treat honest mistakes with extreme severity.
For that reason, I have an accountant handle my tax issues, following a long, expensive, and time consuming dispute with HMRC over a simple mistake. Which they made.
The problem is, many junior staff at HMRC have limited knowledge of tax themselves.
But, everything else aside, I believe we should be exact with tax.