A VAT return that we have already submitted to HMRC is incorrect resulting in an underpayment of VAT to HMRC. Need help as to how we correct this on our next return

Hi diane3287,

How was the submitted VAT return incorrect - were there transactions which had not been entered or entered with incorrect amounts/VAT codes?

Thanks

Due to having had somebody working for us on a temporary basis in the office, duplicate expenses were entered, resulting in a greater box 7 figure and an underpayment of VAT.  I have been in and deleted a lot of the duplicate expenses but am now concerned that anything showing in the exception report will not be correct?

I just need to be able to make the additional payment to HMRC relating to the underpayment and also ensure that all other entries are correct for this period (Jul to Sept 2019).

Thank you

Hey diane3287,

If the duplicate transactions were filed in the previous return and have been deleted since then this will automatically generate an exception against the current open return to correct this for you.

You can view the exceptions by going to Taxes > Prepare return > View the additional column for exceptions. From here you can click into the exception amount against the corresponding box to view the exception report which will show the filed amount, current amount, and total difference impacting your VAT return.

Please let me know if you'd like further clarification on this,

Thanks :)

Georgia, thank you for your additional response.  But when I look to see what the VAT is due for this quarter, the VAT due figure that is showing only equates to the sales invoices that we have entered and has not added the underpayment for the previous quarter?

Hi Diane, 

Can you see that exceptions have been generated against the current open return when clicking 'Prepare return'?

Georgia, yes I can.  But I just do not understand how the underpayment of VAT for the last return is going to be added to what is already due for the sale for this quarter?  If I go into taxes and run VAT 100 report the VAT showing is only for the sales invoices and does not include the underpayment.  I am just very concerned as obviously we have underpaid HRC.  Thank you so much

Hi diane3287

If there have been duplicate expenses entered in a previous VAT period which has reduced the VAT amount due and you then submitted that period to HMRC the VAT due will be amount you should've paid to HMRC.

We appreciate that those expenses should not have been included therefore when you delete them they will now show as exceptions in the present VAT quarter increasing the amount you owe in this period.

For the amount due for the present quarter you will have to select the prepare return option. The VAT 100 report will not show the exceptions.

John, thank you, that's fine then if you think it is correct.  I am just concerned that our figures will be incorrect and I don't want there to be any repercussions from HMRC.  I will obviously check everything through at the end of the return and if there is anything else that Iooks of a concern, I will come back to you.  Many thanks to you and Georgia for your help to date

Sorry John I also meant to say.

The duplicate expenses were entered with the return being submitted to HMRC.  It was not until we started entering data into the new return that we noticed that there were duplicate entries.  So basically the return that was submitted to HMRC for April 2019 to 30th Jun 2019 contained duplicate entries and we did not delete them until we started the new return ie 1st Jul to 30th Sept 2019 (current one).  Thanks