Originally posted by Robot
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Not sure my accountant has explained that one to me.
You saying I need to pay tax and VAT on the invoices I've raised but haven't received payment for*, and probably never will from the ******* agency that's gone bust taking my money with them?
At the moment, and the way I'm going to continue until someone with a big enough stick tells me to change:
1. issue invoice
2. wait for invoice to be paid
3. pay VAT due in quarter the invoice was paid
4. pay corp tax on invoices paid in the company's financial year
[the above is with me operating a ltd company on the traditional VAT scheme, not the newer flat rate one]
So in regards the OP's question, point 3 above is the only time I see a real advantage if I manage to delay issuing an invoice so I know it won't be paid until the start of the next VAT quarter. Obviously the delay shouldn't be longer than a week or two or you've only yourself to blame if something happens to whoever is supposed to be paying it.
* the only thing I've seen to support this 'pay up before you receive the money' approach is when on the flat rate VAT scheme, and then you can claim back relief against any VAT paid on invoices that turn into bad debt.
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