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Need to reclaim VAT overpayment, but how? Accountants, help me!

4 replies

Terpsichore · 12/09/2009 17:55

Sorry, this is pretty feeble, but I've never had to do this before and I can't get my head round the method!

To explain: I'm on the flat-rate VAT scheme and have just discovered that the rate I use was lowered by 1% from the beginning of December last year. So I've overpaid on the two returns since then, and should now be able to adjust things on my latest VAT return (now due).

I know exactly how much I need to claim back (it's only a couple of hundred quid), but my brain is turning to jelly when I try to work out exactly how it all goes on the VAT form. The 'advice' says to use box 1 ('VAT due in this period on sales/outputs) and box 4 ('VAT reclaimed in this period on purchases/other inputs').

So do I just put the VAT due for the current period in Box 1, as normal, and enter the overpayment in Box 4, then do the subtraction and enter the revised figure in Box 5 as the total amount I need to pay? Thing is, it's not exactly being reclaimed on purchases, is it....? I'm just trying to correct an overpayment.

Apologies for the level of detail here. It's so complicated! Any MN accountants who can give me a (simple) answer? TIA!

OP posts:
ChasingSquirrels · 12/09/2009 17:57

I'd adjust the box 1 figure.

Terpsichore · 12/09/2009 18:00

Wow, that was quick! Thanks, ChasingSquirrels! So to clarify, I could just subtract the overpayment from the amount due for the current VAT period, and proceed as normal? I've been told that any 'minor' adjustments don't have to be notified to HM C&E so....that would be all done and dusted?

OP posts:
ChasingSquirrels · 12/09/2009 18:01

yep

Terpsichore · 12/09/2009 18:06

My fairy godmother! Thank you!

OP posts:
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