Hi. I have a fairly new business and new to this forum. Most of my VAT invoices will have the price of the product or service, e.g. 500 pounds and then the VAT is added on top, which I pay.
For one company, they have a special deal for new customers for a year contract, of which I am one, and the price is e.g. 500 pounds inclusive of VAT. Their invoice shows, e.g. 416.60 and then VAT at 83.40, to show e.g. total of 500 pounds. Is this okay? Will it be accepted by HMRC? I have however, made a calculation of 416.60 at 20% and it is a slightly different figure of 83.32. Will the HMRC be happy with the lack of consistency? Many thanks.
For one company, they have a special deal for new customers for a year contract, of which I am one, and the price is e.g. 500 pounds inclusive of VAT. Their invoice shows, e.g. 416.60 and then VAT at 83.40, to show e.g. total of 500 pounds. Is this okay? Will it be accepted by HMRC? I have however, made a calculation of 416.60 at 20% and it is a slightly different figure of 83.32. Will the HMRC be happy with the lack of consistency? Many thanks.
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