Client fees and VAT forestalling | AccountingWEB

Client fees and VAT forestalling

We invoice a client, say £1,000 plus VAT.  We charge all the VAT on that invoice but the client pays the balance in installments (say £200 now and another £100 per month for 8 months).

Also some clients pay £100 a month and at the end of each year we knock that off our fees.

How will we be treated for anti-forestalling?  I assume in case 1 we are giving clients over 6 months to pay £300 so they would be caught, but is the rest outside the scope of anti-forestalling?

How about for the second case?  Are the installments treated as including VAT at the relevant rate they are paid?

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Anti-Forestalling measures

Malcolm McFarlin |
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Constantly Confused |
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Advice from Abbeytax

John Stokdyk |
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