VAT on retention?

[Alan @ BroomeAffinity]

https://www.gov.uk/hmrc-internal-man...ply/vattos2350

[Alan @ BroomeAffinity]

Sorry, I pressed send before I commented. The above link explains it. Basically you charge vat on the £10k and the client deducts £500 retention from the gross. You pay £2k to vat under the usual time of supply regs. When you get the retention paid you don’t need to account for vat on that.

[TheCyclingProgrammer]

Sorry, I pressed send before I commented. The above link explains it. Basically you charge vat on the £10k and the client deducts £500 retention from the gross. You pay £2k to vat under the usual time of supply regs. When you get the retention paid you don’t need to account for vat on that.

The way I read OPs post is that they are the one keeping a retention.

[Alan @ BroomeAffinity]

VAT on retention?

The way I read OPs post is that they are the one keeping a retention.

Yeah you’re right. My bad. Same principles apply though.