The Book-keepers Forum (BKF)

Post Info TOPIC: Tax point on deposits


Guru

Status: Offline
Posts: 965
Date:
Tax point on deposits


Morning all

Just wanted to check something with you to make sure I am correct,

Am I right in thinking that if a business receives a deposit for a future job that this is held on the balance sheet until the work/services are carried out and at that point it will be recognised as income? However from a VAT perspective the tax point will be the date that the deposit is received and therefore will count towards the VAT threshold if not registered.

Grateful as always for any thoughts

Cheers



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 3272
Date:

Morning Doug

Yep to both. On VAT, if invoice issued before receiving deposit the invoice date is the tax point.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

Status: Offline
Posts: 965
Date:

Leger wrote:

Morning Doug

Yep to both. On VAT, if invoice issued before receiving deposit the invoice date is the tax point.


Thanks John, thought so



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 8295
Date:

To add to this, if deposit is refundable (or kept as comp for loss/damage) then no VAT.

A bit more in here www.gov.uk/hmrc-internal-manuals/vat-supply-and-consideration/vatsc05820

Not checked the Act for turnover calc (only cos its never impacted on a client)

As with my other post this morning - in certain circs a client account may also be required (eg ongoing rental of kit deposit, property rental etc)

__________________

Joanne

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position (and my that I dont mean with HMRC)

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2007-2019 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: info@bookcert.co.uk.

Privacy & Cookie Policy  About