Thought I would lull you into a false sense of security with the heading - sorry!
My customer provides services to Germany, amongst other places. Each quarter I complete an EC Sales list - previously easy as I waited for the euros to drop in and used the converted rate to sterling for the EC Sales report.
This time however, I hadnt received the cash so converted to sterling using the days Bank rate and reported it. Since then the funds have come in using a different rate. The difference is more than £100 so should I complete a correction to the EC Sales list? What is the best way to avoid this?
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Now to complicate matters further on this occasion the German company have underpaid by quite a substantial amount - it looks like they have deducted German Withholding tax (WT) (plus a stray 220 for which I have no idea, yet).
My customer has not had WT deducted by this company before despite dealing with them for almost 2 years. Previously he did ad hoc jobs for them but now has a contract for about 120k, so Im wondering if this made them nervous about not charging it!?!
In the past my customer has paid a small amount (c£120) of WT to a separate German company he did business with and this was just adjusted via his Corp Tax by the Accountants as year end. But given the higher amounts involved and to secure relief in UK should they now be going down the route of trying to reduce the relief in Germany? (sure Ive read something to that effect somewhere).
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Please be gentle with me, with your responses as Im (just) the book-keeper not the Accountant!
-- Edited by Cheshire on Friday 24th of October 2014 12:30:50 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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
Hi
I've got confirmation that it is all withholding tax and I've asked for a tax certificate. In fact I then found a letter on my files from April (clearly forgotten due to old age!) from April 14 stating they would not deduct WT so that's just been scanned across to them. You've just reminded me(thank you) that I've not had a quote from their Accountant to sort the issue out, but at the rate I'm going I will have saved them a big bill.
I've credit noted the difference out for now to WT nominal code.....hahahaha generate EC Sales list.....no chance as this is my 2008 sage version client!! I do it manually although it's no hardship as there aren't that many. Hoping the regional manger can sort it, although I might then miss my wind up sage (heehee)....given him/her some stick!
Hope you're ok!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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
