20% VAT

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TykeMerc replied

5 February 2011, 12:58
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.
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d000hg replied

5 February 2011, 12:33
Originally posted by TonyEnglish View Post

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.

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.
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malvolio replied

5 February 2011, 12:28
Originally posted by TonyEnglish View Post

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.

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...
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BoredBloke started a topic 20% VAT

5 February 2011, 11:25
20% VAT

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.
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