VAT ON PREPAID SERVICE
I just have a question regarding VAT.
My client has just been registered for Vat and the 1st return is end of Jan 2012. They operate a private hire business (minicab service). They are agents and only have to pay VAT on the commissions they earn.
They take lots of advance bookings which are paid at the time boking with credit or debit card.
I am stuck on an issue. I was told that we have to pay the VAT on the day the credit card is charged, even if the journey is carried outside the 3 months period the VAT return covers.
These all assume that we know commission we will earn if the job is carried out as it is booked. This is not always the case. The job might get cancelled or there is additional drops etc.
Questions: Can we pay the Vat only once service is carried out (for the journeys paid prepaid).
Thanks for your help in advance. Happy New Year to everyone.
- How do you find shareholders of a Cyprus Company ? 186 13
- Valuing my fast-growing internet business for transfer of goodwill on incorporation 136 2
- HMRC won't let me set up online DD for PAYE 124 2
- You know its over 245 3
- What is the amount of dividends received as a shareholder that requires registration for self assessment? 169 3
- Cocaine anyone? 465 8
- Late Registration for VAT 473 13
- EIS/SEIS 132 1
- Amortisation of Goodwill 261 1
- TaxCalc Accounts production 401 5
- Depression - HMRC penalties case won because of this illness. 401 12
- Solicitors now, Accountants next 676 10
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 537 10
- ACCA - still making me laugh 564 4
- Personal pension 394 9
- Legal Aid Agency claims and VAT 216 1
- How much of your work is admin? 1,204 11
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 904 27
- Petrol expenses for self-employed 144 3
- Is Co House "losing" Abbreviated Accounts? 1,516 22
- Hive up 484
- Accounting referance change & deficient accounts. 449
- corporate hierarchy 430
- Advice - 267
- Anyone had HMRC refusing to act on EPS database glitch? 220
- WWOOFers 214
- Co. limited by Guarantee now closed 202
- Art Gallery - Splitting a property between business and personal use 191
- Mutual Trading - Exempt CT Income - Do I need clearance? 171
- Tax liabilities in USA for warehoused products 170