Quote:
Originally Posted by Royboy39
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.
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I agree with that roy, and I dont actually do the accounts, but am assured that this reduction is costing us in one way or another, I assumed it was on work which carried over the reduction date, whatever the reason, the accounts people aint chuffed about it, some of it is because to do it by the book, they will ultimately be changing the prices then altering the national insurance contributions, then it will all change again next year, so in more ways than 1, it is costing small business rather than helping them.