Thanks for everyones comments, but im still no closer to the answer.....
The amount of VAT to charge isnt in question, but the amount I need to put aside is.
All information states that the invoice will be chargeable + 15% VAT, but as one day falls before 01-Dec, does the new 'Flat Rate Scheme' percentage apply to this one day as well??
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Reply to: VAT - the new minefield!
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Previously on "VAT - the new minefield!"
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Originally posted by Beefy198 View PostThe only reason I was so anal about it and made sure I had the correct advice and wording was because I was getting conflicting advice from the agency and wanted to ensure I invoiced at the correct rate and nothing was held up (I didn't trust them to not pick up the phone and choose to delay payment instead).
And slight differences in FRS aside, none of us gain or lose from VAT, this change is just PITA admin. Couldn't Mr Darling have introduced this new rate just for retailers?
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Originally posted by scaramanga View PostMy accountant (SJD) told me that if I issued an invoice on 1 Dec for work carried out in November I should use 17.5%.
Therefore, if you invoice on Monday it is 15%. If you happen to invoice tomorrow morning it is 17.5%. When the work is actually done doesn't matter.
The only reason I was so anal about it and made sure I had the correct advice and wording was because I was getting conflicting advice from the agency and wanted to ensure I invoiced at the correct rate and nothing was held up (I didn't trust them to not pick up the phone and choose to delay payment instead).
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This is copied from HMRC Vat changes Q & A
If you are a business that sells mainly to other VAT-registered businesses and have to issue VAT invoices the new rate applies for all VAT invoices that you issue on or after 1 December 2008 …... except for where:
1) You provided goods or services more than 14 days before you issue the VAT invoice. For example, if you issue a VAT invoice on 1 December for goods or services provided before 18 November 2008, or
2) you were paid before 1 December.
In these cases, your sale took place before 1 December and you must use the old rate of 17.5%.
Hope this helps
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My accountant (SJD) told me that if I issued an invoice on 1 Dec for work carried out in November I should use 17.5%.
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VAT - the new minefield!
I'm hoping someone out there can help clarify the situation below....
I will have one day (28-Nov) as part of my next invoice that falls before the 01-Dec VAT rate change date. My understanding of the rules surrounding the change is that this will be subject to the new 15% rate.
My question is whether the amended Flat Rate Scheme percentage should be applied to this one day or is this one day still liable for the old FRS percentage as it falls before 01-Dec - the date stated by HMRC as being when the FRS rate comes into effect??
Any guidance would be much appreciated.Tags: None
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