VAT and Accounting ErrorsMTM Legal
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A small Ltd Co and new client had about 2 years of expenses stuck in a draft folder. Director has paid for these on personal accounts and credit cards. These were not accounted for in either VAT returns or Accounts. Approx VAT under claimed £10k and Corporation Tax overpaid of £10k.
I think the company must come clean on the VAT under the error reporting procedure but not sure if the previous years accounts should be adjusted and new corporation tax returns filed. Also the cost of fixing this I think should be claimed from prevous Accountants.
Appreciate any suggestions on best practice approach.