VAT- i think i overpaid...help!

[Choice]

Hi.

I am new to all this business stuff but am doing my best and learning every day. I have had a bookkeeper for the last quarter and after he explained how VAT works and how you work out how much you pay to HMRC i think i made a huge schoolboy error last quarter. :eek:

Apparently, the VAT you pay to HMRC is the VAT you have already charged to your customers. Right? :|

So, all of my supplies to customers are zero rated, so that means i don't have to pay VAT to HMRC, right? :|

If so, can i reclaim what i paid last quarter? :|

Please help, this is driving me round the bend!

[Leo-InstallingIT]

Hi

I can't remember the exact rules/timescales involved. One of the accountants I'm sure will come along and confirm. But when you submit your next return, you should be able to fill in a correction to claim back your overpayment.

Many Thanks

Leo

[Jenni384]

Hi.

I am new to all this business stuff but am doing my best and learning every day. I have had a bookkeeper for the last quarter and after he explained how VAT works and how you work out how much you pay to HMRC i think i made a huge schoolboy error last quarter. :eek:

Apparently, the VAT you pay to HMRC is the VAT you have already charged to your customers. Right? :|

So, all of my supplies to customers are zero rated, so that means i don't have to pay VAT to HMRC, right? :|

If so, can i reclaim what i paid last quarter? :|

Please help, this is driving me round the bend!

If the error is under £10k, you can just include the amendment on your next VAT return.

More info here (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000077).

If you don't charge your customers any VAT, can I ask how you calculated that you owed HMRC VAT?

[Choice]

You may ask, in fact i have asked myself that question many times over!

Because i am a bit thick with these things i thought when you entered your figures on the VAT return, y'know income minus VAT paid on supplies, the difference was what you paid to HMRC.

Looking at it now it seems so ridiculous that i thought that, but i did.

Still, you live and learn.

I am pleased there are forums like this to help people like me out!

One day i will be proficient!

[elainec100@cheapaccounting]

It really sounds like you need to review the system you are using for accounting.

You must make sure that you keep proper accounting records to support the figures on the vat return.

http://www.hmrc.gov.uk/vat/managing/returns-accounts/accounts.htm

If you are unsure your self then this is something to get help on from an accountant or properly qualified bookkeeper asap

[elainec100@cheapaccounting]

The amount you pay to HMRC for vat = output tax - input tax


output tax is what you charge on sales

input tax is what you have paid on supplies of services / goods -

[Choice]

I agree, which is why i know that my first return was wrong. My bookkeeper has done this quarters figures so i know they are right!