I'm thinking about writing off a large number of invoies and claiming back the vat at company I'm working for however I have been asked if we can reissue the invoices after that.
So they wany to write them off and get the vat back then reissue and see if they can get payment for them and then pay the vat, it has total stumped me as I don't know if this is ok to do.
What's the point? You reclaim VAT back on the old debt then issue a new invoice which you have to pay VAT on! Unless of course they intend doing the first at the end of the VAT quarter and the second at the start of the new quarter. That's a big no no.
I'm sure you already know but you can only reclaim VAT on a debt after 6 months has passed
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Wouldn't be the companies year end by any chance would it!
This is not only a VAT issue it would also adjust the P&L understating profits by moving turnover into the next period (assuming here that you are not on a cash basis). That breaks the rules on revenue recognition and is in itself fraudulent reporting.
Taking the original question seperate to assumption about this being the period end, writing off a debt implies that the debt is irrecoverable (for example client has gone bankrupt).
Reissuing the invoices would disprove the basis of the initial write off (we are not talking about an isolated mistake here but a complete reissue).
There appears no VAT claim to be made except for any invoice where such is legitimately irrecoverable (which does not seem to be the case here).
kind regards,
Shaun.
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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.
we crossed in the post. Think that we complimented rather than disagreed with each other though.
Happy Sunday matey. Hope that your having a good one.
P60's and torturing my boy with old GCSE maths papers for me today.
All the best,
Shaun.
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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.
