VAT Return issues

[Karalius]

Hi,

 

Happy holidays. I am looking for some guidance.

 

Just returned home with nice letter from HMRC about VAT return of £571.

This is for period of 27th July to 31st Oct.

 

I have bought some items to flip on amazon back in June/July total 120 units, that cost me £1080 in total.

I have sold them all for £2,395.93 - the amazon fees.

This was sold during 6th July to 27th to be exact.

 

Then I decided to open a VAT account and look for some distributor accounts,

however never been able to find good products and decided I need to close VAT account as the only way to get in with distributors was to have VAT account.

 

I have closed my VAT account, however never filled VAT return and did not think anything of it now.

I would like to pay the VAT, but I don't believe 571 quid is the right amount.

 

How can I work out how much I have to pay and file the return?

It says I have 30 days from the date of letter to file or there may be penalties.

 

Please see picture attached of the letter.

 

Thanks

Scannable_Document_on_28_Dec_2018_at_21_38_16.pdf

Edited December 28, 2018 by dx100uk
spacing

[ploddertom]

The basics to VAT are that you purchase an item say for £100 + the VAT @ 20% = £20 total payment £120. You then sell the item at say £240 inc VAT = £40. The difference is what the VAT man is due - in this case £40 - £20 = £20. For the period given you need to know what your sales & receipts are to submit a return. If you did not make any sales or purchases then your submissions are £0 Sales & £0 Receipts. Until you you submit then they will hound you for the money they have assessed you owe.

[Karalius]

The basics to VAT are that you purchase an item say for £100 + the VAT @ 20% = £20 total payment £120. You then sell the item at say £240 inc VAT = £40. The difference is what the VAT man is due - in this case £40 - £20 = £20. For the period given you need to know what your sales & receipts are to submit a return. If you did not make any sales or purchases then your submissions are £0 Sales & £0 Receipts. Until you you submit then they will hound you for the money they have assessed you owe.

 

Thanks that makes sense. How can I go about submitting my return? I have tried to do it online and when I request access to VAT it comes with below message.

[h=2]There's a problem[/h]This information has already been used to request access to submit VAT Returns. You should:

 

• check your details
  
• get help using HMRC online services
  

[ploddertom]

The VAT Helpdesk is actually quite good 0300 200 3701 open 8am - 6pm closed Bank Holidays, you will need your VAT Reg No plus other info they may ask you. Do you already have a Government Gateway user ID & password?

[Karalius]

The VAT Helpdesk is actually quite good 0300 200 3701 open 8am - 6pm closed Bank Holidays, you will need your VAT Reg No plus other info they may ask you. Do you already have a Government Gateway user ID & password?

 

I suspected it may be best to call them on Monday morning. I noticed they are closed on weekends. Yes I do have both ID & password, just doesn't let me progress further. Perhaps it could be the case because I closed my VAT account and did not fill in my return.

[ploddertom]

That could be a strong possibility - HMRC never did do joined up thinking. I've had more than my fair share of run ins with them

[AndyOrch]

Thread moved to a more appropriate forum HMRC..please continue to post here to your thread.

 

Regards

 

Andy

[antone]

I suspected it may be best to call them on Monday morning. I noticed they are closed on weekends. Yes I do have both ID & password, just doesn't let me progress further. Perhaps it could be the case because I closed my VAT account and did not fill in my return.

 

The most common cause of the error you reported is that you have more than one gateway account. Definitely check this with the VAT helpline.

[Karalius]

The most common cause of the error you reported is that you have more than one gateway account. Definitely check this with the VAT helpline.

 

Can confirm this in fact was the problem, hence I could not access my return. Thanks!

 

Following on from here I did not want to create another thread, so thought would make this one live. Advise if otherwise I should create a new thread.

 

Problem that I have now that during 31st October and 8th January (today) I have sold products worth £24k, however I did not charge any VAT on this as it's under 85K threshold.

 

Is there anyway for me to backdate my VAT and close the account as of 31st October, as honestly speaking I did not need it. Or would I be able to close only as of today's date and would I have to pay the VAT back out of my own pocket for this period? Hope this makes sense.

 

Thanks

[Karalius]

Just learned that I cannot back date my VAT deactivation date Is this true? I don't know how I am going to find £6k to pay for this now as my business has not even made this much in profits...

[ploddertom]

Thought I had already responded to this.

 

To file your VAT in you need to know how much you spent on stock exVAT, the VAT you were charged, how much you sold it for exVAT - if it is the £24k you say then the VAT exclusive figure for that is £20k.