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30 days payment terms
Comments
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just add 10% to the bill0
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Sort of linked...
I was browsing through the HMRC VAT pages (I must lead an exciting life) and seem to recall seeing nfo about early payment discounts along the lines of you can indicate on your invoice a % discount for payment earlier than your standard terms.
Interestingly, it said that even if your customer does not take advantage of the discount by not paying early, the discount amount is still the one valid for VAT purposes. So say you invoice for £1000 but offer a 20% discount price (£800) for payment in 5 days, even if they take 30 days to pay the value for VAT purposes is still £800.00
Of course, i can't find where I read it. Did I dream it? Is this the case?
The reason I include this on this thread is that it could encurage customers to pay 'early' and even if they dont, you still 'make' a bit on the reduced VAT
Does that make sense?0
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