Hi all,
This is my first post so go easy, I have a VAT return due and I forgot to speak to my accountant during the week ;-( oops
I have raised some fairly large invoices based on 45 days, which the customer has yet to pay. (they are a payer, just a consistently late payer...)
The invoice date falls into my July-Sep vat quarter and the due date falls into Oct-Dec. As the amount was quite large I might end with a situation where I would have to borrow money to pay the VAT due if it was registered to July-Sep, however by the time the Oct-Dec is due I will have the money in hand.
I see this thread here;
http://forums.contractoruk.com/accou...-received.html
but it seems more intuitive that the liability should arise when the payment is due, otherwise you are going to lose interest on the VAT liability amount when the invoice due data spans VAT quarters. And what happens when the client queries and you make a modification to the invoice amount, you would have to submit a correction to the VAT return that was registered when the original invoice was raised.
Anyway, I am sure there are loads of threads on this matter which I can look at in more depth, but I would be grateful a yes/no on using the due date for VAT if the liability was going to wipe me out cash-wise...
Many Thanks,
Tee
This is my first post so go easy, I have a VAT return due and I forgot to speak to my accountant during the week ;-( oops
I have raised some fairly large invoices based on 45 days, which the customer has yet to pay. (they are a payer, just a consistently late payer...)
The invoice date falls into my July-Sep vat quarter and the due date falls into Oct-Dec. As the amount was quite large I might end with a situation where I would have to borrow money to pay the VAT due if it was registered to July-Sep, however by the time the Oct-Dec is due I will have the money in hand.
I see this thread here;
http://forums.contractoruk.com/accou...-received.html
but it seems more intuitive that the liability should arise when the payment is due, otherwise you are going to lose interest on the VAT liability amount when the invoice due data spans VAT quarters. And what happens when the client queries and you make a modification to the invoice amount, you would have to submit a correction to the VAT return that was registered when the original invoice was raised.
Anyway, I am sure there are loads of threads on this matter which I can look at in more depth, but I would be grateful a yes/no on using the due date for VAT if the liability was going to wipe me out cash-wise...
Many Thanks,
Tee
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