VAT owed

[mwt.taylor88]

Is VAT owed on the invoices I issue or the invoices that are paid/money that comes into my bank account?

I have some customers that I gave credit to who now don't look like they are going to pay. Do I still have to pay VAT on these?

Thanks

 

[Diamond Bookkeepers]

It depends on how you registered for VAT. Did you register for the cash accounting scheme?

 

[mwt.taylor88]

Probably not. Just did the standard VAT register procedure

 

[Diamond Bookkeepers]

In that case, you will need to pay across the VAT to HMRC.

You can change over to cash accounting, so you will only pay/reclaim VAT when you have actually receive the money from customers or paid supplier invoices.

Here's some more cash accounting information
https://www.gov.uk/government/publi...731-cash-accounting#basics-of-cash-accounting

 

[mwt.taylor88]

Thanks

 

[STDFR33]

The VAT element on the sales invoice would have been included in that quarters VAT return.
You can write the debt off and make an adjustment for the VAT. See here:
https://www.gov.uk/vat-returns/fill-in-your-return

 

[UK Contractor Accountant]

You do not have to register to use vat cash accounting scheme - you can just start using it from the beginning of an vat accounting period.

 

[Diamond Bookkeepers]

You do not have to register to use vat cash accounting scheme - you can just start using it from the beginning of an vat accounting period.

True, but you do have to go back and adjust previous VAT returns and put the adjustments on your next VAT return