Elan Self Billing & Invoices

[minstrel]

Of course you can be on the CA scheme. Where have I said you cant be? However, the tax point issue is determined by the agent raising the self billing invoice in agreement with HMRC.

Your agent should have sent you confirmation of this agreement with HMRC when it told you not to raise invoices.

Sorry, I still don't get it. I'm not trying to be argumentative, I just want to try and understand.

I understood the thrust of your argument to be that you might get into trouble with HMRC for paying VAT in a later period in the event of an investigation. I was thinking if you were on the CA scheme, the date the invoice is paid is the only one that matters?

Nope because the agency has a self billing VAT arrangement with HMRC. That takes precedent.

When you say the self billing arrangement "takes precedent" what is taking precedent? The point at which the VAT payment is due or the tax point?

WRONG! By raising an invoice and sending it to the agent, you're creating a tax point of when the VAT is due.

Is it that there is a difference between the "tax point" and "when the VAT is due" which is different on the CA scheme to the normal VAT scheme?

When on the CA scheme, I don't see how raising an invoice can create the point at which VAT is due as I thought the whole point of the CA scheme is that the VAT only becomes due when payment is made rather than when the invoice is raised.

[malvolio]

Of course you can be on the CA scheme. Where have I said you cant be? However, the tax point issue is determined by the agent raising the self billing invoice in agreement with HMRC.

No, absolutely not.

The point of CA is that the VAT is due when the cash (hint... ) hits your bank account. The VAT point on the invoice under CA rules merely defines the prevailing rate at which VAT will be charged, NOT the point at which it is to be accounted for or paid.