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Cash Advance and VAT
lilypad2007
Posts: 1 Newbie
in Cutting tax
Hi,
I run a small business from home and have taken on a new assignment where there is likely to be some expenditure by me up-front. To counter this I have agreed an advance payment from the client on expenses to be incurred. I am VAT registered and will be charging VAT on my fee when the job is complete. Should I charge VAT on the on the expense advance, which is just a cash payment and not for any services or goods?
Thanks in advance?
I run a small business from home and have taken on a new assignment where there is likely to be some expenditure by me up-front. To counter this I have agreed an advance payment from the client on expenses to be incurred. I am VAT registered and will be charging VAT on my fee when the job is complete. Should I charge VAT on the on the expense advance, which is just a cash payment and not for any services or goods?
Thanks in advance?
0
Comments
-
Yes - the receipt of monies creates a tax point.0
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