Uneven VAT return, small refund Q1 > big bill Q2

londonTiger

Basically my trade is completely dead during Christmas. Picks up in March (corporate events).

I have small VAT refund due for the quater ending Feb 2015 (not yet submitted). But March alone I have a pretty sizeable VAT bill from the looks up of - have been involved in projects back to back the entire month.

On of our biggest projects to date was supplied to client on 2nd March (falls on Q2). But we invoiced and receive payment in Q1.

I know technically you're not supposed to do this. But can we do a woopsie and just post the invoice as 28/02/2015. That way we even out our VAT liability.

I basically want to pay a bit more of the VAT due for Q1 than postpone it all into Q2.

Also the bookkeeping software is awful at dealing with VAT refunds - there is no way to post it in the book keeping software.

I have to post it as "refunds on other taxes received" which does not get added to the management reports as VAT and appears on the p&l as "other income received" under sales.

Asked accountant can we post it early and he said NO we need to post it on the date of supply. I've elected not to do cash accounting for VAT so can't chop and change midway.

But we've had invoices posted on the wrong dates before and accountant never picked up on it.

Pennywise

The relevant date for the VAT return is the earlier of invoice date or payment date. You say it was both invoiced and paid in Qtr 1, so it goes on Qtr 1 VAT return, regardless of when the work is done. Remember that this is different than for accounts, in which case it is the date the work is done that matters.

Re the software, you need to say what software you're using for anyone to be able to help. Or ask your accountant what code it needs posting to?

antrobus

londonTiger wrote: »

....I know technically you're not supposed to do this. But can we do a woopsie and just post the invoice as 28/02/2015. That way we even out our VAT liability.

I basically want to pay a bit more of the VAT due for Q1 than postpone it all into Q2.

..

Why? What benefit will you gain by doing so?

londonTiger wrote: »

....Also the bookkeeping software is awful at dealing with VAT refunds - there is no way to post it in the book keeping software ..

Are you using a version of Sage? It seems to be an issue that stumps a lot of people. Try Google.:)