VAT filing error - how can I correct my mistake?
Question asked by David Foster 3 years ago
Hi there. I could do with some advice here! We create our client invoices in excel and send them to the client so we have total control over the words and presentation and the costs are shown as a single rolled-up cost. Then I make a simple invoice on ClearBooks that breaks the items out across the 3 respective sales codes (I don't want the client to be exposed to those details). A little bit of extra work for me, but it's worked well for 5 years! Then 3 months ago I made a mistake which didn't spot till late and now I'm stumped how to resolve. On a Clearbooks invoice to a European client, I somehow added 20% VAT to a £5k invoice and didn't notice till just now. So the client invoice was right (£5k), and they've paid the right amount (£5k), P&L is right, but I suddenly noticed ClearBooks thinks that client owes us £1k and realised the ClearBooks invoice was wrong. The problem is that in the meantime, we've declared VAT and paid it. So Trade debtors is £1k too high and we've overpaid HMRC by £1k. I can't edit the invoice as it is locked as it's been submitted on a VAT return .I've experimented with the demo database, but no matter how I write it off, it won't come straight. How do I?
- make the invoice fully paid and reduce trade debtors by £1k?
- reduce VAT control by £1k to compensate for last quarter's overpayment?
- change the VAT return so it reports the right number to HMRC and leaves us back at zero after filing. (so far, it's the last point that has defeated me). Any ideas please?