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Change from VAT on invoice to VAT on payment

Question asked by Mike Hill 6 years ago

At the moment, I pay VAT based on invoices. How can I change to pay VAT on payment?

5 Replies

Hi Mike,

You need to change your VAT scheme to cash accounting, you can do this by heading to Settings > Organisation > Details, then click the tax link on the right and then click the manage VAT schemes.

You'll then be taken to a page where you will need to delete the current scheme and add one with the correct details, by selecting cash accounting from the VAT accounting column. Please click on the guide below to view how to do this:

https://www.clearbooks.co.uk/support/guides/getting-started-2/vat-settings

If you need any further assistance, then please don't hesitate to ask.

All the best,

Shaz

Thanks Shahriyar, I understand that you have to join at the beginning of a VAT accounting period. My current Vat period ends on 31-12-14 Should I wait until 01-01-15 to change in Clearbooks or can I change now for this period?

Hi Mike,

If you want to carry on using invoice accounting up till the end of this year, then you will need to have an end date for the current scheme as 31/12/2014 and then add a VAT scheme for 01/01/2015. However, if you want to use cash accounting from tomorrow onwards, then the end date for the current scheme would be today and start date for cash accounting will be tomorrow.

Hope that helps.

Regards,

Shaz

Hi Mike,

You need to change your VAT scheme to cash accounting, you can do this by heading to Settings > Organisation > Details, then click the tax link on the right and then click the manage VAT schemes.

You'll then be taken to a page where you will need to delete the current scheme and add one with the correct details, by selecting cash accounting from the VAT accounting column. Please click on the guide below to view how to do this:

https://www.clearbooks.co.uk/support/guides/getting-started-2/vat-settings

If you need any further assistance, then please don't hesitate to ask.

All the best,

Shaz

Quick question on this. I selected the wrong scheme when I started adding data. My accountant tells me that I should be on cash accounting but says that it cannot be changed retrospectively in clearbooks so I have to wait until a month end, swap schemes and they will add a correction. Is that the right way to do it?

Hi Richard,

If you were to delete the wrong scheme and enter the correct scheme in its place, then this would mean going forward your invoices and bills would be created on the new/correct scheme, however it would not backdate and make amendments to past invoices and bills, which were created on the wrong scheme.

You would need to head into these previous ones by clicking on the ID link, clicking the edit button and then clicking the update button, so that it updates it on the new vat scheme.

I hope this answers your question. Please feel free to contact us if you need any further information.

All the best.

Shaz

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