VAT over the increase period

**Clare@InTouch** · 24 December 2010, 10:50

Originally posted by Scrag Meister View Post

Am having conflicting views of what rate i should be charging.

I think that seeing as I am raising an invoice on the 4th Jan 2011 that I will be charging 20% VAT for all work that is on the invoice.

I have also been told that i should be invoicing work to the 3rd Jan at 17.5%

Currently I am planning to raise 1 invoice for the period at 20% VAT, is this correct?

Didn't think it had anything to do with when the work was done, but when the invoice was raised.

You can do either:

Sales that span the change in rate | Business Link

If you're flat rate registered keep in mind that charging 20% could result in a bit extra profit too as the FRS percentage gap increases in January.

**rd409** · 24 December 2010, 11:06

Discuss this with your client. I asked the client what they want me to do. I generally generate the invoice on mondays, and because the change is midweek, I didnt wanted to create two worksheets, and two invoices. The client was not interested in saving few tenners for that extra hassle of signing off two worksheets, and two invoices as well.
Again, that really depends on individual situations. But make sure, your accountant knows exactly what you have charged, so s/he can make sure, you dont end up paying more/less to HMRC.

**swamp** · 24 December 2010, 12:09

If I was working on 1-3 Jan I would invoice twice. Keep it simple.

**Scrag Meister** · 24 December 2010, 14:15

For me its purely to do with the date on the invoice.

The work will be purely December, but I have always invoiced on the first Tuesday in the new month after the month end to tie in with the Agencies payment schedule. Makes no difference to me really.

Work is to 31st December, Invoice date is 4th Jan. Just the way it works for me.

Just don't want to find I have done something wrong.

VAT over the increase period