My client is leaving the FRS (13.5%) on 1st April and will then account for VAT as normal. They are on cash accounting.
For the next VAT return , my understanding is that any sales invoice raised up to 31st March and paid after 1st April will carry 13.5% VAT and they can not claim input VAT on any purchases invoice dated before 31st March and settled after 1st April. Is this correct?
Also if anyone has experience on how to deal with this on VT I would be grateful for your input!