Hi
I am IT services provider and invoice my client every 4 weeks. I am paid a daily rate. As per HMRC
"The time of the supply
This is the 'tax point' and is based on the date goods are supplied, a service completed, or a payment received if payment occurs before the physical supply is made or the invoice is issued"
I provide services first and then invoice for them. Do i have to provide or charge the client for 20 days individually or can i continue to invoice once in 4 weeks? ofcourse when I invoice every 4 weeks, then the date of service supplied does not match HMRC instructions.
bit confused there.
Help
Replies (1)
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You are OK on a 4 weekly basis
Clearly you have agreed to work for a period (4 weeks) before being paid and this would be regarded as a continuous service over that 4 weeks. The service ends every 4 weeks and you have 14 days in which to issue an invoice and the tax point will then be the invoice date.
I hope, otherwise I owe clients several thousand invoices!