What to do with Invoices sent before VAT registration - Help please...

Post Info

TOPIC: What to do with Invoices sent before VAT registration - Help please...

Johny

Member

Status: Offline

Posts: 6

Date: Wed Apr 7 14:57 2010

What to do with Invoices sent before VAT registration - Help please...	Permalink

Hi, I am new to this forum, but could someone please advise me on my situation. I have just decided to become VAT registered. I applied online and was approved in 2 weeks. However, I have a few unpaid invoices from clients which I issued 6 weeks ago, before even considering VAT registration. The payments from these invoices should be paid into my business account this week (and after my effective VAT start date from the certificate I was issued). SO, my question is, do I pay VAT on these payments on my first VAT return? Id so, I will loose out big-time. I plan to use the Cash-accounting scheme. Any info on this would be appreciated :) -- Edited by Johny on Wednesday 7th of April 2010 08:02:33 PM __________________

Shamus

Forum Moderator & Expert

Status: Offline

Posts: 11981

Date: Wed Apr 7 15:15 2010

RE: What do do with Invoices sent before VAT registration - Help please...	Permalink

The question is why did you decide to become VAT registered? If it was because you had already exceeded the registration threshold then the invoices should have been subject to VAT and should have been marking invoices VAT registration pending. That would not have been a proper VAT invoice and payment should not be made on the basis of it as your VAT registration number must be included. However, it informs the client of their pending liability for when the invoice is replaced by a proper invoice. You become liable for VAT from the date that you should have applied for registration. If this was a voluntary registration then you become liable for VAT from the date that you applied for VAT registration. NOT the date that you received confirmation of acceptance or your VAT registration number. Assuming that this was voluntary registration then invoices prior to application would not be subject to VAT unless they would have pushed your turnover into compulsory registration anyway. Rob, Bill, Mark, what are your thoughts? __________________ Shaun Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.

Johny

Member

Status: Offline

Posts: 6

Date: Wed Apr 7 21:02 2010

RE: What to do with Invoices sent before VAT registration - Help please...	Permalink

Thanks for the answer Shamus. I opted for VAT registration, as I handle more and more printing every week, and wanted handle the invoices myself. I don't pass the £67,000 threshold, though ;) __________________

Page 1 of 1 sorted by

VAT Invoicing

Quick Reply
Please log in to post quick replies.

Members Login

©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy About