Quote:
Originally Posted by derekgas
But the retailer loses 3 quid in every hundred for however long the stock is carried, compared to what they buy in now. In terms of work carried out last week, which in our case would be around £5000, if we changed the invoice (from the quoted figure), then overall we lose out, the vat on labour rather than products is the issue. some of our products are bought in at the full rate, and sold on at 8%, and we cant claim that back for three months as it is, and so lose interest too.
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You should'nt lose out at all....The invoice that you prepare is a service you provide and the date you raise the invoice.
You will not have to pay VAT at the old rate.
A £10,000 investment at the current 5% if your lucky, earns £500 per annum.
Let's not forget that you hold funds due to the Government for the same amount of time.
If an invoice was issued today for work carried out then the Vat applicable would be at 17.5%.
If an invoice was issued for job done on 1st December the Vat applicable would be at 15%.
If you have quoted for a job and the invoice date is of today then you would be quite within your right to charge at 17.5%.
Dont forget this would have to be declared and paid as output to the revenue.