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SoleTrader-IT

Whats the Margin of error like for HMRC

Im taking a very small company.

Earning monthly net profit of £1500 ish
 
Like if im not sure on a few items were taking a fifty poun swing.

Would they fine me?
 
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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?
 
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SoleTrader-IT said:
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?
Click to expand...

I've got to say I'm still not 100% sure what you are asking?
 
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Taking a wild stab in the dark about what the question was, this 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?
 
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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...
 
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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
 
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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.
 
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