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The Book-keepers Forum (UK) -> Professional Book-keepers in Practice -> Invoice/Tax Point Date
Post Info TOPIC: Invoice/Tax Point Date
BC Boy


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Invoice/Tax Point Date
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Hi Folks,

I am seeking views on the use of Invoice/Tax Point dates.

I have a VAT registered client that holds on to their purchase invoices and only passes them to me once they have been paid. I process the paperwork that I am sent and prepare P & L reports for the month (the one just passed) and the YTD.

My connundrum (hope my spelling is up to scratch!!) is that I am of the belief that it is right and proper to use the Tax Poin but this means that I am posting into a historic month and while my reports for December are correct based on the information that I have the figures for November have changed and the change is "invisible" as it is swallowed up in the YTD report - I dont believe that my client sees an accurate picture of November or December

My question is...... is my belief that I must use the Tax Point date correct.

Many thanks in advance for taking the time to read this post and for your comments



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Rhianrach


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Is it cash accounting or accrual that you are using?



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Steve
BC Boy


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Accrual.

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Rhianrach


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I would suggest using the tax point then and telling your client to hand over his invoices when he gets them. What does he hope to acheive by keeping them until they are paid? You can always give them back once entered in to the books, so he can satiate his invoicing desires.



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Steve
ADAS


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I agree using the tax point is better but how about posting the year to date movement in the current month to let the client see the inaccuracy.

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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
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