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Community > Small Business >

NOOB Alert, historical VAT corrections, where do they show?

Started by Neil Barker -   in Small Business

Hi All,

I am new here and having to move all book keeping in house for reasons I shall not go into detail on, although seem to have a basic grasp of xero and its workings, I have some rather (probably basic) questions to ask in the next few weeks so please bear with.

VAT corrections

Context - I have looked through my book keeping from a third party back to about 9 months ago and there is VAT that has not been claimed for and it should have been.

Question - if I go back and correct those bills now and ensure that they claim the VAT, does the VAT difference show in that quarters VAT and thus I have to re-issue with HMRC (if that is a thing?) or will it be clever and reduce the VAT in my next return?

Thanks in advance, Neil.
Best Reply as chosen by Neil Barker (Original Poster)
Hi Neil

Xero's VAT is clever and places a toggle next to everything it has claimed in a prior VAT return. If you correct a prior VAT return invoice in Xero, it will automatically claim the VAT in the section called 'Late Claims' which can be found on the second page of Xero's VAT return called 'Vat Audit Report'.

However, I believe there is an HMRC limit on what you can reclaim without submitting a claim form independent of your VAT return. I suggest that you investigate on .gov what the limit is and calculate how much VAT has been missed to see if you need to submit a claim before altering Xero's figures.

HMRC are very 'fussy' on what a supplier invoice must contain before you can reclaim the VAT. There are pages on .gov that can help you with this too.

Kind regards


Allie S