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Readers' forum : Cashback

12 June 2018
Issue: 4651 / Categories: Forum & Feedback

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’?...

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