Correcting un-billed VAT error

Accounting
1

Hi All,

Silly me has realised that I’ve mistakenly not charged VAT on an item when I should have.
Basically, the overall invoice is £6.84 short of VAT.

I have no intention of collecting this from the client (even though they’re VAT registered and could claim it back themselves) as it wouldn’t go down well with them.

So… how do I account for it?

Do I create a discount equal to the amount? But how does that calculate as the reduction of the total due by £6.84, reduces the VAT due?
Do I write it off as a “bad debt” for want of a better description?

Any thoughts greatly appreciated.
Cheers,
Will

2

Normally you would credit note the original invoice in full, then issue a new invoice inclusive of VAT, this adjustment would be automatically picked up on the next VAT return. If it’s just a case of ensuring you’re paying the correct VAT to HMRC, you could just adjust this into your next VAT return using the manual adjustment tools.