Tax point for Non-VAT company

[Standby]

Hello,
How should be treated tax point in case of non-VAT company? If the services was performed on August and invoice was issued on 5th of September, the tax point in this case should be 31/08/2024 or 5/09/2024? Payment was received on 15/09/2024

Thank you in advance!

 

[David Griffiths]

I'm not sure what you are asking here. The glib answer is that tax points relate to the timing of supplies for VAT, and have no relevance to non-registered companies.

If it was a VAT registered company the basic tax point would be when the service is performed, and you don't state exactly when. That can be overridden if an invoice is issued within 14 days of the basic tax point. In practice HMRC don't seem to concern themselves with the 14 day limit providing that invoices are issued regularly once the work is complete.

 

[Standby]

I'm not sure what you are asking here. The glib answer is that tax points relate to the timing of supplies for VAT, and have no relevance to non-registered companies.

If it was a VAT registered company the basic tax point would be when the service is performed, and you don't state exactly when. That can be overridden if an invoice is issued within 14 days of the basic tax point. In practice HMRC don't seem to concern themselves with the 14 day limit providing that invoices are issued regularly once the work is complete.

Yes, there is information about it in VAT Notice 700. But there is no information which tax point should be used if you send non-VAT invoice.

 

[David Griffiths]

As above there is no tax point for non-VAT invoices. Why would you expect to find information about non VAT invoices in a VAT publication?

 

[Standby]

As above there is no tax point for non-VAT invoices. Why would you expect to find information about non VAT invoices in a VAT publication?

Because it is only quidance which I found As you state - there is no tax point for non-VAT invoices. Could you tell me then, which date should be used in my example? It is important about exceeding the VAT registration treshold.

 

[DontAsk]

It is important about exceeding the VAT registration treshold.

Well why didn't you say that to start with?

I guess you're saying delaying until September will avoid crossing the threshold for the previous 12 months? What's going to happen with the other September invoices? Sounds like you are in danger of crossing the threshold anyway.

I know what I would do but it might not be legal.

Have you asked your accountant?

 

[GriffithAccts]

Hi Standby,

If it is important about exceeding the VAT registration threshold (and following correct procedure for HMRC), then it is your taxable supplies in the last 12 months (even though currently not VAT registered), point of services is August, so date is 31.08, never September.

If you need help, reach out.

Best,

Daniel