Hi there, I have been a registered Bookkeeper for 14 months, and things are going well. One of my clients is a Builder and is VAT registered. Most projects have been small until now...he is working on a big renovation project and he has sent the client interim invoices, which have been paid promptly. The interim invoices show VAT breakdowns (5%, 20%). Am I right to put the tax point through as each individual interim invoice? (payment is made 2 days later on all). I have just received the 4th and final invoice to enter onto the system, and there are lots of final adjustments (extra materials etc) so I presume that I am dealing with this correctly, but I keep doubting myself. Thank you very much for your help.
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Les has answered anyway, have to be off the blocks early this morning to beat him!!
A good read up on what and when a tax point is created will forever help you with such scenarios as eg payments up front can mean a different date to the invoice date. Old study texts from AAT etc will aid that, or the HMRC guidance, or better still the VAT act itself.
Edited to change the linked post
-- Edited by Cheshire on Wednesday 16th of August 2017 12:56:53 PM
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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
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