Flat Rate VAT in prior year

[Kelly_33]

Hi.

I have been speaking to our accountants today following correspondence from the revenue about an underpayment of VAT on the flat rate scheme.

The revenue who are ok and can see it is a genuine mistake but this affects a prior year, so the Profit for the company is overstated so any adjustment will result in a corporation tax refund or credit?

How do I show this, should the catch up amount on VAT be charged through this years figures?

Thanks
Kelly

 

[VanillaOnlineAccountancy]

What did your accountant say? - With regards to the VAT, It depends if it's a material amount or not. If not, you can just adjust this year, if it's substantial, last years figures may need to be restated in this years accounts. However, last years accounts will not need to re done.

 

[UK Contractor Accountant]

Are HMRC saying the Returns submitted are incorrect or just that the company has underpaid vat for some reason? I can understand the wrong flat rate % being used causing an underpayment for example.

I would get back to your accountant and ask them what went wrong?