Forum

• # 80401
• Sat 03 Mar 2012 03:14 PM

Hi
I have just taken on a guy who is just starting out as VAT reg on the flat rate scheme.  I have no prior experience of FRS - but have years of experience in normal VAT.

Firstly - does anyone have any tips on FRS?  Anythign to beware of?


Secondly.  He raises his invoices for the month the first few days of the next month.  Ie Jan dated relate to Dec.  VAT starts from 1-Jan.  Do I class the turnover for Jan as the invoices raised in Jan - or the invoices raised in Feb?  His VAT quarter ends end of Feb.  SO is it invoices dated Jan and Feb, or work done Jan and Feb that you pay over in the FRS?

Looking back at his records - for SA - he has classed his t/o for the year being the invoices raised Apr-Mar (ie actually this is work done from Mar-Feb).  Is this correct? 

Much simplier if people date the invoices end of month!



Also anyone have any experience of what you can claim back in VAT on assets in hand at reg date?


Thanks!
                 

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• # 80528
• Wed 07 Mar 2012 11:44 AM

Hi Penguin

When operating the Flat rate scheme you would debit and credit input and output normally to the VAT control then when you do the Actual VAT return using the flat rate it will leave a balance in the VAT control this balance should be written off to FLat Rate over / under recovery.


It is important to watch out that they are not paying more on the flat rate scheme that they may have been under the standard scheme if this is the case then they may want to look at switching to standard or cash accounting.

In terms of the dating of invoices the invoices for the following month this could become a issue under the tax point date rules (although you can have upto two weeks to raise an invoice after the supply date of the goods or service).

kind regards
Stuart        
  

• Forum Moderator, South East & Greater London Regional Chairman
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