.png)
.png)
Approach to backdating zero-rated sales previously unclaimed.
My client owns a cafe in Leeds and has been VAT-registered and trading since January 2013. However during that time the business has never recognised the fact that there have been some zero-rated sales for cold takeaway food such as sandwiches and chocolate brownies. All sales entered into the point-of-sale system have been treated as standard-rated.
Our suggestion is that our client properly records zero-rated and standard-rated sales (using a different button on the till) and that we extrapolate the percentage of zero-rated sales for the first three months of doing things properly back to January 2013 when the business was first VAT-registered.
Would HMRC be happy with this approach? The total adjustment is likely to be less than £10 000 so we could include the claim on the client’s next VAT return.
Query 19 182– Takeaway Tim.
Reply by Gardener
Would HMRC be ‘happy’?...
