PDA

View Full Version : VAT tax point question


wendystephens
28th February 2010, 13:24
Hi - I wonder is someone might be able to help me? I have 2 questions about VAT which I will post separately...

Question 1
I am registered for VAT and I am completing my 3rd VAT return, but I am coming up against a small problem that I can't find the answer to.

Basically I sell print services to my clients (so I receive invoices from my suppliers) and so far all the invoices that I have received, I have paid within my VAT accounting period.

However now I have some invoices that I haven't paid yet and which have a invoice date of late Jan but aren't due to be paid until next week... (my VAT period ended 28th Feb 2010 and I am NOT using cash accounting).

When I went to the HMRC website I found the following:
5.1 I have not yet paid some of my purchase invoices when my return is due. Can I still deduct the VAT?

It depends. If you are using the cash accounting scheme you can only deduct VAT once you have paid the bill. If not, you can deduct the VAT provided you have a VAT invoice which shows a “tax point” date before the end of the period shown on the return.

Basically - they are making it sound like I have a choice as to whether I claim the VAT now or whether it is in the next VAT period...

Its easier for me to claim the VAT next period but I was just wondering if I am doing the right thing?

Many thanks for your help, Wendy

mikky_uk
18th March 2010, 16:06
If you fail to claim VAT for an invoice in one period say jan - March, a simple way is to enter the invoice date as if it was received in April.

We did that a lot in my last place of work when invoices arrive late. This way you can ensure that your paperwork and calculations are not constantly being changed.