Unpaid Invoice Error in Submitted VAT

Question asked by Paul Mitchell 9 years ago

Hi,

I've made a VAT mistake and I'm not sure how to fix it. Just before my last VAT quarterly submission I raised an invoice. Unfortunately, the invoice has an error; I put the post VAT amount in the pre VAT box. And to make things worse I did not spot this until after it is was included in the VAT return. To ensure I did not over charge the client, I raise another invoice for them which will be included in the next VAT quarter.

So, I have now over paid VAT based on an unpaid invoice. I think there are 2 questions:

How do I correct the next VAT return to fix the over payment I made last quarter (I use Clear Books to submit my VAT return for me). And, how do I 'void' the unpaid invoice?

Many thanks,

Paul

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3 Replies

  1. Apply the payment to the initial invoice
  2. Credit note the balance of the initial invoice
  3. Credit note the new invoice
  4. Hope the client never wants a copy of their statement and if they do just explain the turn of events

Can't think of any other way off the top of my head.

Best answer
9 years ago

Hi Kevin, thanks for your reply.

  1. My quarter ended on 31st Oct.
  2. The first invoice was 28th Oct, so Clear Books correctly included it in my VAT return.
  3. The second invoice is also dated the 28th Oct as I just copied the old one, but it was generated after the 31st, so will be included in the next quarter VAT.
  4. The client never saw the first invoice, they paid the second invoice on 3rd Nov.
  5. Invoice accounting, which is why Clear Books included the first invoice in the VAT return.
9 years ago

Hi Paul

Can you just confirm a few points so i've got the scenario straight in my head:

  1. What date did your VAT quarter end
  2. What date was the first invoice
  3. What date was the second invoice
  4. When did the client pay
  5. Do you use cash or invoice accounting
9 years ago

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