As we all now know to qualify to stay on current FRS VAT percentage we have to spend above 2% of turnover on goods per quarter
My question is this :-
Is that 2% of invoiced amount OR 2% of received amount in each quarter
I ask because some times there is a quite a difference in turnover from one quarter to the next and also quite a delay on payment for some invoices we've submitted, both of which will make a difference to the 2% threshold figure per quarter, so I need to know which to calculate the 2% threshold figure, invoices submitted during each quarter OR money received into company account during that quarter ?
Generally the spend on goods will be as and when we need stuff, but it might help to coincide spend on goods with better turnover quarters
I just need to know is it invoices or money received which counts as 'turnover' as a busy quarter might get paid to us into the next quarter
My question is this :-
Is that 2% of invoiced amount OR 2% of received amount in each quarter
I ask because some times there is a quite a difference in turnover from one quarter to the next and also quite a delay on payment for some invoices we've submitted, both of which will make a difference to the 2% threshold figure per quarter, so I need to know which to calculate the 2% threshold figure, invoices submitted during each quarter OR money received into company account during that quarter ?
Generally the spend on goods will be as and when we need stuff, but it might help to coincide spend on goods with better turnover quarters
I just need to know is it invoices or money received which counts as 'turnover' as a busy quarter might get paid to us into the next quarter
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