FRS - Late Payment Of Invoice

FRS - Late Payment Of Invoice

Author
Discussion

T5R+

Original Poster:

1,225 posts

209 months

Friday 19th December 2014
quotequote all
Have been asked to leave the Flat Rate Scheme at end of last quarter.

All VAT liabilities upto date - even though using the cash accounting approach..

No invoices to issue in current quarter but an old invoice (less than 6 months old) has now been paid. How do I treat this? Is the VAT liability at 20% or at the hitherto discounted FRS%.

To complicate matters I am charged VAT on eg phone contracts, subscriptions, fees, etc within current quarter THUS do I treat my input VAT at 20%.

Surely cannot deduct output VAT @ FRS from input VAT @ 20% and pay difference?










Eric Mc

122,031 posts

265 months

Friday 19th December 2014
quotequote all
On what date did you leave the scheme?

T5R+

Original Poster:

1,225 posts

209 months

Friday 19th December 2014
quotequote all
HMRC issued letter in mid Nov 14 to tell me that they were removing me from the FRS, whilst invoice (issued June 14) was paid late Nov.

(Full year ended Oct ie 4 full quarters)

matty g

231 posts

198 months

Saturday 20th December 2014
quotequote all
Isn't VAT due on Invoice date NOT Payment date.

I now nothing about FRS just normal VAT accounting

sgrimshaw

7,323 posts

250 months

Sunday 21st December 2014
quotequote all
matty g said:
Isn't VAT due on Invoice date NOT Payment date.

I now nothing about FRS just normal VAT accounting
Then you should know about the VAT cash accounting scheme.

VAT Notice 731

surveyor

17,822 posts

184 months

Sunday 21st December 2014
quotequote all
matty g said:
Isn't VAT due on Invoice date NOT Payment date.

I now nothing about FRS just normal VAT accounting
see above cash accounting scheme...