VAT - invoicing before 4th Jan 2011

[Al Cormack]

Had some clarification today from HMRC about what vat rate to use and when.

 

Any invoice issued after 4th Jan 2011 for work completed has to be at 20%

 

My question was for the scenario where a job/quote has been accepted now, but the work can't be completed until the new year, either because I'm booked up or a TPO application has to be made.

 

To get round this the customer has to be invoiced before 4th Jan 2011.

So either December is going to be a real bumper month or I'm going to be typing a lot of invoices on 3rd Jan.

[Rupe]

Depends on your quote, if its XXX plus vat then you add the vat rate at the time of invoicing, or if its XYZ inc vat then its up to you to pay the extra amount.

 

But yes, invoice everything before 3 jan to keep the customers happy!

[skyhuck]

We are talking about a 2.5% increase.

 

So thats £25 on a £1000 job or £12.50 on a £500 job.

 

I don't see it as a massive issue.

[Johny Walker]

if you have a boat load of invoices al dated the same & vat increase they will smell a rat & be sniffing round your books soooooooooooooooo fast !!!!!

 

[Rupe]

they wont see the dates of your invoices unless they are already sniffing round your books.

[Johny Walker]

i think they will be doing a lot off sniffing trying to catch folk out :001_tt2:they wont miss a opertunerty to get some extra cash in

[skyhuck]

i think they will be doing a lot off sniffing trying to catch folk out :001_tt2:they wont miss a opertunerty to get some extra cash in

 

As the number of VAT office staff is being cut (along with most other public sector jobs) there will be less sniffing not more.

 

I think they base most of their investigations on checking our figures against all others in our sector, anything unusual soon shows up.

 

Don't think "sniffing" comes into it much.

[Stephen Blair]

it will be easier to work out:thumbup: