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Old 30-06-2008, 08:05
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James Smith James Smith is offline
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I would suggest you just need to issue a VAT only credit note back to your customer, with the appropriate refund sent at the same time.

From their side it is not a VAT "error", so it will go on their return in any case. On yours presumably you are completing your first VAT return for the period ending May for submission today so adjust for it now, no harm done although it is probably worth giving your accountant a quick ring first to talk through this proposal as presumably you have one with staff and a limited company.

Edited to add, couple more thoughts:

1. If your customer ISNT VAT reg, then just re-issue the invoice. They wont care, more cash for you!
2. If this is as it looks your first VAT return definitely call your accountant to run through it before you submit to make sure you have got it right and in particular as you have been trading pre-registration. There are all sorts of issues with the first return about pre-registration VAT, such as on stocks and assets purchased in the previous 3 years plus services incurred in the previous 6 months where you can make a reclaim. Serious amounts of money available if you do it right!

Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536773

Confused about bookkeeping, self assessment and VAT for your small business?

Last edited by James Smith; 30-06-2008 at 08:21.
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