[Rogue Trader]

Im due to make my first VAT return at end of March and i am tring to sort out a system whereby i pay the VAT on the money recieved and NOT the money invoiced , another WC that i know pays the return on monies invoiced which is a simple way of doing it as he says he will eventually recieve the money even if he hasnt yet, this however i cant afford to do and the only way i can see to be accurate about this is by having two folders of invoices for the period , 1 paid and one not paid , then at the end of the period just add up all the invoices from the paid folder and pay VAT on that amount. This is a pain to do though and will mean that for each cheque and online payment i recieve i have to go fishing around in the unpaid invoice folder to find the invoice, mark it paid then put it in the paid invoice folder , EACH and EVERY payment .
Anyone got any other ideas ??

[crouch_400]

what your talking about is "cash accounting " its what we do - so if you invoiced 20 k + vat in the month but only received payments of say 5K+ vat all you pay is the vat on 5 k minus the vat you claim back ( have your accountant sort it out ) any good accountant will save you money and cover there costs .

hope that helps

Danny

[Rogue Trader]

ok , but how do you organise all the invoices

Im due to make my first VAT return at end of March and i am tring to sort out a system whereby i pay the VAT on the money recieved and NOT the money invoiced , another WC that i know pays the return on monies invoiced which is a simple way of doing it as he says he will eventually recieve the money even if he hasnt yet, this however i cant afford to do and the only way i can see to be accurate about this is by having two folders of invoices for the period , 1 paid and one not paid , then at the end of the period just add up all the invoices from the paid folder and pay VAT on that amount. This is a pain to do though and will mean that for each cheque and online payment i recieve i have to go fishing around in the unpaid invoice folder to find the invoice, mark it paid then put it in the paid invoice folder , EACH and EVERY payment .
Anyone got any other ideas ??

[Rogue Trader]

Im due to make my first VAT return at end of March and i am tring to sort out a system whereby i pay the VAT on the money recieved and NOT the money invoiced , another WC that i know pays the return on monies invoiced which is a simple way of doing it as he says he will eventually recieve the money even if he hasnt yet, this however i cant afford to do and the only way i can see to be accurate about this is by having two folders of invoices for the period , 1 paid and one not paid , then at the end of the period just add up all the invoices from the paid folder and pay VAT on that amount. This is a pain to do though and will mean that for each cheque and online payment i recieve i have to go fishing around in the unpaid invoice folder to find the invoice, mark it paid then put it in the paid invoice folder , EACH and EVERY payment .
Anyone got any other ideas ??

[Rogue Trader]

..

[crouch_400]

Hi ,  unless you use some form off accounting software im unsure of which system would be best for you . we have a separate spread sheet for all our invoices and payments are marked off accordingly .

the easiest way i guess is if you bank / collect in say 1000 quid in a given month  + vat  you then only need to deduct your expenses that include vat so it may work out as vat on 1k (175.00) take vat from expenses 400  + vat  (70 ) you pay 105 to vat man .

This is only a crude working out though.

you should already have a system in place to track who pays and who hasn't - the vat man doesn't care whos payed you - he just want to know how much you have collected in that quarter - any vat you have spent and that you pay on time.

Chers

[crouch_400]

Hi again

im not an expert as such but if you want to chat on the phone ( can be easier than posting let me know)  . or i can get my book keeper to pass on some advice for you if needs be .

office : 01904 781018 ( ask for danny )
mob 07931 179549

ta

[outdoor restore]

Have you looked into the flat rate vat scheme, whereby you pay a fixed percentage of turnover but do not reclaim vat paid.
www.hmrc.gov.uk/manuals/bimmanual/bim31585.htm