How to deal with a cancelled receipt

[Paula Queiroz]

Hi

We have an issue that we need and appreciate some advise:

We have a subcontract receipt that has been cancelled. This receipt was already included in our former accounts report (already submitted and accepted by HMRC, ending period May 2016).

1) How must we deal with this?

• a) must we create a journal with the credit on the “subcontractors” account item and the debit of the same amount in the company accounts and report this in a future accounts report (covering the time period which corresponds to the receipt cancellation date), or
  
  
• b) must we ask HMRC to replace the previous report and withdraw the receipt from that account report

2) Is there some procedure or formal obligation to inform the HRMC about this situation, other that report in the accounts reports?

Your comments will be must obliged

Thanks

Paula

 

[MyAccountantOnline]

Paula are you saying you included as an expense in your accounts a cost which was later cancelled/written-off?

 

[Paula Queiroz]

Yes. Exactly. It was a service aquisition which after all was cancelled

 

[Scalloway]

If HMRC have already accepted your accounts I would just include in the next submission. How much is the sum of the cancellation compared to your total expenses?

 

[Paula Queiroz]

Thanks for your comment. We are a very small company with a very small income and also small expenses. It corresponds to around one half the total expenses.