I was just putting my invoces into the spreadsheet that I use for tracking them. My agency uses a self billing system. I've just noticed that the payment made in Jan, based on the December timesheets was charged at 17.5% VAT. Surely if the payment and invoce date were in Jan (20th Jan invoice date) then they should have been using the 20% VAT rate. I thought the vat rate depended on when the invoce was created, not when the work was done.
-
Rule Number 1 - Assuming that you have a valid contract in place always try to get your poo onto your timesheet, provided that the timesheet is valid for your current contract and covers the period of time that you are billing for.
I preferred version 1! -
Always an issue with the continuous supply of services, but actually either option is correct. Not a problem at our end since the VAT is never yours anyway - unless, of course, you're on Flat Rate...Originally posted by TonyEnglish View PostBlog? What blog...?
-
There's more than one way of processing VAT as well, I forget the details but you can do your quarterly VAT on invoices raised, or actual income I think.Originally posted by TonyEnglish View PostOriginally posted by MaryPoppinsOriginally posted by vetranComment
-
I've always worked on the basis that the invoice date and tax point date are the same as it's easier, plus I never agree to a longer invoice period than a fortnight.
Literally speaking they can differ a fair bit and if the VAT rate has changed then this issue arises.
If you're stuck with a self billing system then you've no option other than to accept their accounting approach.Comment
Comment