Cash Account Method & Reverse Charge on Services

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Sparetoolparts

Free Member
Oct 26, 2015
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  • #1
    Hi

    I'm using the Cash Accounting method and need advise on reverse charges on services I am receiving from EU & Non-EU companies

    Mainly the services are things like Google Adwords / SEO reports on my website that sort of thing. I happened to spot that Reverse charges can't be applied to cash accounting, if that is the case, how do I record these purchases in my accountancy software (Kashflow) ?
     
    S

    Sparetoolparts

    Free Member
    Oct 26, 2015
    573
    52
    43
  • #4
    Hi @lesvatadvice they do, as I record my invoice in kashflow on the day the money comes out of my account.

    The issue is HMRC give 2 x forms of advice

    1. If using Cash Accounting I can't do Reverse Charges I have to record these transaction using the normal accural methods

    But also say

    2. All acquisition of Services from EU & Non-EU must have a reverse charge applied.

    So what should take president on this 1 or 2 and should I or shouldn't I include figures in box 2 & 9 of my VAT return?
     
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