Quick VAT question

[Chris71]

I've been a bit slow to respond to HMRC on my latest VAT return and they've done their own deffault assessment.

The thing is their assessment is significantly lower than my own! Should I just send a cheque for their figure? I'm pretty sure mine is right, but I have no intention of arguing when HMRC's is barely half the ammount.

[pugwash4x4]

send the higher figure as you still owe it

any later VAT enquiry would highlight this discrepancy and could lead to some uncomfortable questions and some even more uncomfortable penalties.

Sneidn the higher mount will also produce some brownie points when you have an enquiry!

[Eric Mc]

You're legally obliged to pay what you really owe.

Pay the full amount.

[Jgtv]

Put it this way Pay the correct amount and submit the correct return no more hassle.

Pay the incorrect amount, fail to put in a return and you will just flag yourself for an investigation, then possibly a PAYE inspection or investigation into your personal tax as a result of the first one.

If you cant afford it speak to the revenue they should be able to help.

[Chris71]

Will do. Cheers gents.

Of course this would all work better if I had my company cheque book to hand, I'll have to wait 'till tomorrow now. I think I've (unintentionally) established some sort of record for just how long HMRC will wait for a tax return!

[MaxAndRuby]

Chris71 said:

Will do. Cheers gents.

Of course this would all work better if I had my company cheque book to hand, I'll have to wait 'till tomorrow now. I think I've (unintentionally) established some sort of record for just how long HMRC will wait for a tax return!

Enjoy your VAT inspection

[svm]

I'd have thought that anyone just paying the figure HMRC has made up, will find themselves receiving an accounts inspection pretty soon.

There's only 2 reasons to just pay:

1. You can't be bothered to workout the correct figure and aren't taking it seriously - Not something HMRC like.

2. You know you owe more and are lieing to them - Not something HMRC are particularly keen on either.

What's your accountants veiw on it?

[smartie]

They will still chase for the missing VAT return to be filed and the next assessment will be "significantly" higher! You will also owe interest on any underpayments.

[Distant]

smartie said:

They will still chase for the missing VAT return to be filed and the next assessment will be "significantly" higher! You will also owe interest on any underpayments.

Submit the return and pay the correct amount. The VAT people can be surprisingly reasonable as long as you don't completely take the piss.