When paying VAT to HMRC, should it be paid in respect of the date of the invoice raised ? Or in respect of payment of that invoice? In most cases this will fall into the same quarter, but if an invoice remains unpaid for months - should VAT still be paid ?
I think I have found the answer to my own question. Since the client is on a flat rate scheme, they can choose to use the cash based turnover method and pay VAT in line with when invoices are actually paid by customers.
lol. Great when you can answer your own questions. I thought when I first saw it you were debating between the standard VAT and cash accounting schemes, didnt realise it was the flat rate scheme.
__________________
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
