Hello
I am looking to switch from standard rate VAT to flat rate, but at the same time am looking to reclaim back the VAT on invoices that have not been paid ( over 6 months ago and issued under the standard rate scheme).
Although I'm aware that, generally, I can't reclaim VAT on goods purchased under the flat rate scheme, am I able to reclaim the VAT on historical debt from those invoices issued under the standard rate scheme.
Any advice would be greatly appreciated.
Thanks
Replies (3)
Please login or register to join the discussion.
Yes
Because it was VAT that was accounted for (I assume) prior to joining the Flat Rate Scheme.
And before anyone else makes the point, do you not have an accountant that could have advised you on this?
Big Decision
Switching to flat rate can be a big decision.
Be aware that there are winners and losers !!
writing off invoices
6 months overdue isn't so old.
Before you write the invoice off, why not give it to a professional debt recovery company? We all know that businesses in financial stress pay the bills first that they need to keep the business running - supplies and services that are business critical and payroll. After that, it's just down to who's shouting loudest!
Often giving it to a third party to collect is just the thing to get your invoice to the top of the pile!