I have a client who would benefit from being on Standard Vat rather than Cash. Can I change this after a VAT return if I journal any outstanding debtors/creditors?
I have a client who would benefit from being on Standard Vat rather than Cash. Can I change this after a VAT return if I journal any outstanding debtors/creditors?
Hi Elaine,
There are a few things you need to do before changing your clients VAT scheme. As per HMRC guidelines, you can only join a new VAT scheme at the start of a new accounting period, it's best to change VAT schemes after you’ve produced the final VAT Return for the previous scheme.
Before changing schemes you should check to see if there are any unallocated transactions as well as any future dated transactions. To check for these you can run several reports including the Unallocated Receipts or Payments Report and the Nominal Activity Report for future dated transactions.
There’s also a step by step guide on how to Change your VAT scheme, which you should find useful.
Hi Elaine,
There are a few things you need to do before changing your clients VAT scheme. As per HMRC guidelines, you can only join a new VAT scheme at the start of a new accounting period, it's best to change VAT schemes after you’ve produced the final VAT Return for the previous scheme.
Before changing schemes you should check to see if there are any unallocated transactions as well as any future dated transactions. To check for these you can run several reports including the Unallocated Receipts or Payments Report and the Nominal Activity Report for future dated transactions.
There’s also a step by step guide on how to Change your VAT scheme, which you should find useful.
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