Just come across an issue one of my clients which is a VAT registered business on the FR VAT scheme. They issued an invoice in January, however, they charged for something which they hadn't yet done, so they amended it on the original invoice rather than through a CR note. This was not advised to me, I had the figures from the initial invoice. It has been included in their VAT return, but partnership return not completed yet. He didn't realise amending the invoice would cause any issues.
I understand that this can just be amended to the next VAT return, however, up to Mar 2017 they were still on the 1% reduced first year FR VAT, now they will be on the normal. So do I work out the VAT based on what it should have been applied at the time? or for the current FR VAT rate? Its not huge figures, just a pain.
CR note is for £294
The initial FR VAT was 7.5% so we have overpaid VAT of £22.05
Current FR VAT is 8.5% so if I include it normally in current VAT return we will claim back £24.99
