VAT/Corporation Tax - mismatch on bank statement - urgent

[Rama07]

Hi Seniors/Gurus,

I am applying for Tier1 General extension next week as Director of my own limited company. My accountant has given me the VAT and corporation tax return acknowledgements and when comparing to the figures on the returns to that of the actual payment i made from my business bank account, i realised there is a slight mismtach in the amounts paid.

Actual VAT - £1000.90
Bank statement - £1000.00

Actual Corporation Tax - £13465.43
Bank Statement - £13465.41

I am planning to submit both the corporation tax returns acknowledgement and VAT return ackowledgement along with other documents. Please can you advise if this would be a problem, if yes, what could be the best way to correct this

[Rama07]

Please can someone give your advise on this?

[techie_09]

For Corporation tax I am not sure but your VAT may be due to rounding logic. Your accountant should be able to tell you about the reasonable explanation.

Alternatively, you can get corporation tax corrected in Director's report.

[Rama07]

Thanks for your reply.

My accountant asked me to ignore as the difference is very minimal and immaterial and can be adjusted in the next payment.

Would this be an issue for the Tier 1 Extension?

[techie_09]

Is there any particular reason why you want to show both to UKBA? I believe corporation tax letter is not mandatory and you can just highlight it in your bank statement. UKBA only want to know whether your company is paying taxes to HMRC (which indirectly gives idea about health of your company).

You can also ask accountant to issue you a letter explaining why mismatches are there (e.g. accounting practice etc.) but I suspect he may charge you fees for this.

[Rama07]

Thanks techie_09,

No specific reason to show theses, I just want to support the corporation tax & VAT by showing the returns and that matches in the bank statements.

Accountant was reluctant to provide a letter for this as the returns are already submitted were correct and there has been a problem in making that payment and he thinks that it would cause more issues.

[veera123]

As mentioned by techie_09, there is no need to submit these documents. Just business bank statements will be sufficient as they will have VAT and Corporation tax entries anyway.

[Rama07]

Thanks for your reply.

Senior members - any other suggestions please?

[psTier1]

I think your accountant is right. HMRC generally shows round off values .... Seniors know better than me .....