Take a free trial of Clear Books Or take a look at our new product Clear Books Micro

Postponed VAT accounting

Question asked by Julie McNeil 9 months ago

From the latest information from the HMRC about preparing for Brexit and no deal, I understand we can use postponed VAT to account for any import VAT going forward. Will this make any effective change to the VAT treatment types or VAT returns within ClearBooks?

3 Replies

Hi Julie,

Of course we will be reviewing all changes that need to be made, when they need to be made and ensuring that whatever impact the possibility of a no deal Brexit causes we will be able to deal with. It is in the capable hands of our management and senior development team.

All the best,

Mohamed.

Hi Julie,

I am not entirely sure what you mean, could you clarify? I would imagine that the best option would be to speak to an accountant in this case as where Brexit is concerned there is a lot of uncertainty. We will be prepared for any Brexit changes that should occur though as and when they are finalised.

All the best,

Mohamed.

Yes agreed there is uncertainty but when HMRC is issuing advice regarding using postponed VAT in the event of "no deal" I'd have hoped you would be aware of this. The advice suggests it will affect the way VAT returns are completed.

I was hoping ClearBooks may be looking into this in preparation of "no deal" and be able to advise what this means.

Here is an extract of the HMRC advice we have received in regard to customs declarations and import VAT:

Delaying your supplementary declarations To give you more time to adapt to these new processes, you can now choose to delay making your supplementary declarations until 4 Oc‌t‌ob‌er 2‌01‌9 for standard goods imported up to 30 Se‌pt‌emb‌er. If you choose to make use of this delay you will need to ensure you record the details of the goods you move, so you can submit a declaration by the deadline.

If you choose to make use of this delay you will still have to report your import VAT. If you are VAT-registered, you should account for import VAT on your normal VAT returns using postponed VAT accounting. If you are not VAT-registered, we’ll write to you again soon to let you know how this will work.

Hi Julie,

Of course we will be reviewing all changes that need to be made, when they need to be made and ensuring that whatever impact the possibility of a no deal Brexit causes we will be able to deal with. It is in the capable hands of our management and senior development team.

All the best,

Mohamed.

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are