Income & VAT Returns mismatch

[BraveInca]

Hi,

Due to a mess up at the end of the year, I paid VAT to revenue in Dec 08 in respect of an invoice that is actually part of 09 income.

So the total amount of VAT paid in 08 will appear to be higher than it should be for the reported 08 income (and next year the VAT paid in 09 will appear to be too low)

Is that going to set alarm bells ringing and bring a revenue audit or something down upon me? Or do they bother doing a comparison of VAT vs income totals?

Thanks...

 

[KDA man]

It is unlikely to cause you any hassle. The key to staying under the radar is filing your returns on time and paying your liability on time.

If you are concerned you could submit supplementary returns creating a refund for 08 and an underpayment for 09. Now this probably would cause a stir....

So, my advice would be to leave well enough alone.

Tony
www.kdaaccountants.ie
[email protected]

 

[BraveInca]

Great, thanks for that.

 

[patftrears]

It is unlikely to cause you any hassle. The key to staying under the radar is filing your returns on time and paying your liability on time.

If you are concerned you could submit supplementary returns creating a refund for 08 and an underpayment for 09. Now this probably would cause a stir....

So, my advice would be to leave well enough alone.

Tony
www.kdaaccountants.ie
[email protected]

This will cause you hassle.
It's very simple to compare your income figures and the income on your vat returns. If these are different it will flag an error.
Revenue have a proper super computer to do this, but even without one it's a basic check.
It would look like you tried to under declare your income to reduce your tax liability but put through the correct amount on vat return.
Don't forget you have to do your annual vat return also.
I'd call to sort it out

 

[Graham_07]

This will cause you hassle.
It's very simple to compare your income figures and the income on your vat returns. If these are different it will flag an error.
Revenue have a proper super computer to do this, but even without one it's a basic check.
It would look like you tried to under declare your income to reduce your tax liability but put through the correct amount on vat return.
Don't forget you have to do your annual vat return also.
I'd call to sort it out

It all depends on how material the amount is in relation to the returns as a whole. Revenue got the VAT money for the invoice earlier than they should have remember. I encounter this often and it is easy to reconcile the VAT and accounts amounts and if really necessary, a note can be attached to the tax return on ROS to explain. However if Revenue did query it there is a genuine explanation and once explained, they would have no further interest in the matter.