Argh - Accountants messed up and paid wrong amount of VAT and Corporation tax!

noddy75

I am a contractor with a Ltd Company. I have just switched accountants. I have been going through all the paperwork of the old accountant and there are some glaring errors. One invoice has been raised twice (with 2 different numbers) and the amounts have been included twice even though it has only been paid (correctly) once. My old accountants have therefore done an incorrect VAT return for the quarter 1.6.08-31.8.08 and I have paid too much VAT. I am pretty sure they have also miscalculated this amount into the (already paid) Corporation tax return that was paid in September.

What can I do ?

L-train

Just raise a credit note against the duplicate invoice. The credit note will be included in your next VAT return, so you'll get the VAT back that way. The credit will also be included in next year's corporation tax return, so that should even things out, I think?

Also check HMRC's website as you have a certain amount of time to file amendments to your corporation tax return after it's filed, I think, but off the top of my head I don't know exact time limits.

Elaine_Wilson

If the overpayment of VAT is £2,000 or less then you can adjust for this on the next return. As you will be completing that this month you will get the relief fairly quickly. By the way, the limit has been increased to £10,000 but that will only apply to your future returns.

You said that you paid corporation tax in September. Unless your profits are more than £1.5 million then this would have related to profits made last year so any error in the accounts in June - August will not have been incorporated into a return yet. So you should have time to correct this.

noddy75

Thanks guys!

Yes, you are right Elaine, it won't affect CT for this year but I have a feeling they messed up last years as well. :mad:

Pennywise

How does the balance sheet balance? If they included the sales invoice twice and wrongly duplicated the monies being paid, then surely the bank balance figure on the balance sheet must be wrong - it would be impossible to reconcile.

Bean_Counter

Pennywise wrote: »

How does the balance sheet balance? If they included the sales invoice twice and wrongly duplicated the monies being paid, then surely the bank balance figure on the balance sheet must be wrong - it would be impossible to reconcile.

Or of course there is a balance in the sales ledger control account

noddy75

Pennywise wrote: »

How does the balance sheet balance? If they included the sales invoice twice and wrongly duplicated the monies being paid, then surely the bank balance figure on the balance sheet must be wrong - it would be impossible to reconcile.

When I left them they sent me photocopies of all the VAT returns along with the amounts. Most of them are correct but one has the amount listed twice (once where they had raised it as a weekly invoice) and then again (included within another raised monthly invoice for the same period but for the month as opposed to just a week).

I am trying to get hold of all the credit notes as they have raised lots of invoices and then cancelled them but with this one they have not cancelled it, even sent me a note saying that it is awaiting payment from ages ago, but it has definitely been paid as part of the monthly invoice. They were crap tbh and I am so glad I am shot of them but they have left me in a right mess :mad:

longforgotten

I would check your debtors list.

Get a detailed breakdown and just check the invoices that are truely unpaid. I would suggest that the invoices left over may have been raised in error.