What is the VAT rate for Nov/Dec 2010 invoices raised on 6th Jan 2011 ??

[sbakoola]

What is the VAT rate for Nov/Dec 2010 invoices which would be raised on 6th Jan 2011 ??

Is it 17.5% or the new 20% ??

Also what do you do for the VAT raised this week ? say you worked on Monday 3rd Jan 2011 do you charge 17.5% for that day only and then 20% from the 4th Jan 2011 onwards for the Tue-Friday ?

[malvolio]

What is the VAT rate for Nov/Dec 2010 invoices which would be raised on 6th Jan 2011 ??

Is it 17.5% or the new 20% ??

Also what do you do for the VAT raised this week ? say you worked on Monday 3rd Jan 2011 do you charge 17.5% for that day only and then 20% from the 4th Jan 2011 onwards for the Tue-Friday ?

Sorry, I'm getting bored answering this question. The answer is 20% if you;re in a normal BoS conract. If you want to know why read Changes to VAT standard rate: How to plan for the change | PCG

HTH

[Moscow Mule]

Sorry, I'm getting bored answering this question. The answer is 20% if you;re in a normal BoS conract. If you want to know why read Changes to VAT standard rate: How to plan for the change | PCG

HTH

It doesn't really as your link contradicts your definitive answer.

* For all other businesses issuing VAT invoices after 4th January, they should be at 20%, unless the goods/services were supplied before the rate change. You can then choose to charge at 17.5%.
* For supplies of services that span the change, then you can charge 17.5% for those services provided before the change, 20% afterwards OR charge all at 20%

Depending on your customer's size and VAT status, they might get a bit cheesed off at having to pay VAT at 20% on their November bill because you couldn't be bothered to invoice them in December.

[malvolio]

It doesn't really as your link contradicts your definitive answer.

No it doesn't...

because

Depending on your customer's size and VAT status, they might get a bit cheesed off at having to pay VAT at 20% on their November bill because you couldn't be bothered to invoice them in December.

...you can of course set the VAT point on your invoice for your "continuing services" to December and so charge the then prevailing rate. But (a) why would you and (b) for most clients the VAT is reclaimable anyway and so is cost neutral.

[Moscow Mule]

No it doesn't...

because



...you can of course set the VAT point on your invoice for your "continuing services" to December and so charge the then prevailing rate. But (a) why would you and (b) for most clients the VAT is reclaimable anyway and so is cost neutral.

You say it with such conviction, when it isn't really clear cut - it's a business decision.

Just saying "it's 20%" without explaining it isn't very helpful.

To answer your question, assuming a £10k invoice, it will benefit yourco £100 or so and notionally cost the client £250 more. I would say £100 to keep the goodwill is well worth it.

Being remembered as "that guy who screwed us on the VAT" doesn't do you any favours.

[malvolio]

You say it with such conviction, when it isn't really clear cut - it's a business decision.

Just saying "it's 20%" without explaining it isn't very helpful.

To answer your question, assuming a £10k invoice, it will benefit yourco £100 or so and notionally cost the client £250 more. I would say £100 to keep the goodwill is well worth it.

Being remembered as "that guy who screwed us on the VAT" doesn't do you any favours.

OK, so perhaps I'm being thick (always possible, if unlikely), but if I get charged £17.50 VAT I add it to my VAT 100 as output tax to reduce my liability. If I'm charged £20.00, I'll add that instead. It's never my money: I reclaim what I'm charged and pay what I've collected. How much of each makes absolutely bugger all difference to MyCo's turnover.

[Moscow Mule]

OK, so perhaps I'm being thick (always possible, if unlikely), but if I get charged £17.50 VAT I add it to my VAT 100 as output tax to reduce my liability. If I'm charged £20.00, I'll add that instead. It's never my money: I reclaim what I'm charged and pay what I've collected. How much of each makes absolutely bugger all difference to MyCo's turnover.

I know that, but does the accounts fella know that without querying it and causing loss of goodwill / chat back and forth etc?

I had a couple of chats the last time they cocked around with the rates about what the correct rate/ invoice date is

[escapeUK]

What is the VAT rate for Nov/Dec 2010 invoices which would be raised on 6th Jan 2011 ??

Is it 17.5% or the new 20% ??

Also what do you do for the VAT raised this week ? say you worked on Monday 3rd Jan 2011 do you charge 17.5% for that day only and then 20% from the 4th Jan 2011 onwards for the Tue-Friday ?

Date the invoice 3rd Jan 2011, and its quite clear its 17.5%. The VAT raised this week given that you seem to invoice two months after the event will be 20%.

[LisaContractorUmbrella]

The standard rate of VAT increased from 17.5 per cent to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

Sales that span the change in rate:
There are special rules for sales which span the change of rate. If you provided goods or services before 4 January 2011 and raised a VAT invoice on or after that date you can choose to account for VAT at 17.5 per cent. You don't need to tell HM Revenue & Customs (HMRC) if you do this.

Services you started before 4 January 2011 but finished afterwardsIf you started work on a job before 4 January 2011 but finish afterwards you may account for the work done up to 3 January 2011 at 17.5 per cent and the remainder at 20 per cent. If you choose to do this you will have to be able to demonstrate that the apportionment is fair.

Continuous supplies of servicesIf you provide a continuous supply of services, such as leasing of photocopiers, you should account for the VAT due whenever you issue a VAT invoice or receive payment, whichever is the earlier. You must charge 20 per cent on invoices you issue and payments you receive on or after 4 January 2011. You may, if you wish, charge 17.5 per cent on the services you provided in the period up to 3 January 2011 and 20 per cent on the remainder. If you choose to do this you will have to be able to demonstrate that the apportionment is fair.

HTH

[prozak]

I'm confused by the question........ here I think is your answer...


"For all other businesses issuing VAT invoices after 4th January, they should be at 20%, unless the goods/services were supplied before the rate change. You can then choose to charge at 17.5%."

Not sure where the confusion is.....