VAT FlatRate payment calculation

[TheFaQQer]

It depends on what method you are using.

You either include all the invoices raised in the period, and do it on that. OR you do it on the cash received in the period.

Depending on what you did in your first return, pretty much dictates what you do in the rest of them. From a cash flow perspective, it's obviously better to do it on the cash accounting method, i.e. when you receive the money rather than when you invoice for it.

HTH.

[css_jay99]

It depends on what method you are using.

You either include all the invoices raised in the period, and do it on that. OR you do it on the cash received in the period.

Depending on what you did in your first return, pretty much dictates what you do in the rest of them. From a cash flow perspective, it's obviously better to do it on the cash accounting method, i.e. when you receive the money rather than when you invoice for it.

HTH.

I registered for Flat rate scheme.

I though that VAT should be based on what was invoiced rather than when payment was received. There was no issue with my first return bcos I had already invoiced and paid (was on hols for overlapping period)


css_jay99

[Gonzo]

I registered for Flat rate scheme.

I though that VAT should be based on what was invoiced rather than when payment was received. There was no issue with my first return bcos I had already invoiced and paid (was on hols for overlapping period)


css_jay99

Normal way is to pay on what is invoiced.

There is a scheme (you probably have to apply for it but I haven't checked) where you can pay the VAT when payment is received, not when invoiced. It is designed to help with cashflow for small firms.

[TheFaQQer]

Normal way is to pay on what is invoiced.

There is a scheme (you probably have to apply for it but I haven't checked) where you can pay the VAT when payment is received, not when invoiced. It is designed to help with cashflow for small firms.

You don't have to apply for it, you just need to choose the method that you are going to use.

I do my VAT return based on money received in the quarter, rather than invoice value, as it helps with cash flow. Nothing to do with the registration, it's just the way to operate. But once you do one, then you need to stick with it, so don't go chopping and changing between being cash based to invoice date based.