I have just started working for a company which is US based, although they are branching out and have this year started to set up and sell from the UK as well. There are only 3 of us in the UK office and the VAT has landed on me. They have already submitted 2 qtrs before I started, and looking at the reports, I am not sure they are correct.
They use QuickBooks and I understand that I will need to run a VAT 100 report to gather the information. Presumably this will only be accurate if everything has been entered into QuickBooks - which I doubt it has!
Also, they have input quite a few consultants purchase invoices (with VAT) onto QuickBooks - do these get picked up on the VAT 100 report, or is it only when they have been paid? I have noticed that these particular invoices have been paid by the US side of the business, but remain on the UK's purchase ledger as unpaid. Surely they cannot claim VAT on these if the UK hasn't paid them, or is there a workaround?
I have just started working for a company which is US based, although they are branching out and have this year started to set up and sell from the UK as well. There are only 3 of us in the UK office and the VAT has landed on me. They have already submitted 2 qtrs before I started, and looking at the reports, I am not sure they are correct.
They use QuickBooks and I understand that I will need to run a VAT 100 report to gather the information. Presumably this will only be accurate if everything has been entered into QuickBooks - which I doubt it has!
Also, they have input quite a few consultants purchase invoices (with VAT) onto QuickBooks - do these get picked up on the VAT 100 report, or is it only when they have been paid? I have noticed that these particular invoices have been paid by the US side of the business, but remain on the UK's purchase ledger as unpaid. Surely they cannot claim VAT on these if the UK hasn't paid them, or is there a workaround?
Thanks in advance
Poppy
Hi Poppy
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, how long in role (incl prior to this job),What training/where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Specifically as well it would be useful to understand what VAT experience have you got as there is a rather basic question in there about payment v invoicing?
Who are the 'consultant' invoices addressed to - UK or US? Who did they actually perform the work for - US or UK?
What VAT scheme are they on? (This is key to when the VAT becomes liable)
Why have the US paid some of the invoices? Just from a cashflow persective?
How will you find out in future which have bene paid by the US and which remain o/s
Do you have a line manager who understands UK VAT? What supervision will you be getting to complete this duty? What handover information have you had (do they eg do some of the VAT calculations outwith Quickbooks?) What input has the Accountant had/have?
-- Edited by Cheshire on Sunday 3rd of December 2017 05:36:55 PM
__________________
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
I passed my AAT back in 2005 and have been working for an IT company for a number of years until recently. My job involved a lot of revenue accounting, producing the P&L's and Balance Sheets etc. As I have worked for large companies, I have never had to deal with VAT much before - this has always been done separately, and I suddenly feel like I am in the deep end ad well out of practice!
The consultant invoices were addressed to the UK, but I guess you could argue that the work was split between the 2 countries. I believe the reason for payment from the US was a cash flow one. They should never have been entered onto the UK ledger really.
I understand that if they remain outstanding for payment on the UK ledger for more than 6 months, then I will have to enter a reverse line on the HMRC return at this time to show that payment has not been made. The VAT returns have been submitted by external accountants, so am guessing (if we continue to use their services) they would request unpaid PL invoices over 6 months old.
I passed my AAT back in 2005 and have been working for an IT company for a number of years until recently. My job involved a lot of revenue accounting, producing the P&L's and Balance Sheets etc. As I have worked for large companies, I have never had to deal with VAT much before - this has always been done separately, and I suddenly feel like I am in the deep end ad well out of practice!
The consultant invoices were addressed to the UK, but I guess you could argue that the work was split between the 2 countries. I believe the reason for payment from the US was a cash flow one. They should never have been entered onto the UK ledger really.
I understand that if they remain outstanding for payment on the UK ledger for more than 6 months, then I will have to enter a reverse line on the HMRC return at this time to show that payment has not been made. The VAT returns have been submitted by external accountants, so am guessing (if we continue to use their services) they would request unpaid PL invoices over 6 months old.
Thanks for your help
Poppy
OP doesnt appear to have been back on.
For when you do - dont do the reverse line or that will make the VAT completely wrong, because the invoice has in fact been paid.
I would suggest you speak to the firms Accountants.
__________________
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
