Hi, I recently started a marketing firm and have registered for VAT.
I have a couple of clients who will be billed for projects once they are completed, which is likely to take about 6 months, however (for my cash flow!) they've agreed to pay in monthly instalments starting now.
I've read online about tax points arising when you receive payment and am thoroughly confused about what to do about VAT invoicing. The clients won't actually be billed by me until the end of the project, which is when I would produce an invoice.
However, do I need to issue a VAT invoice every month they pay? The agreement we have is that, if the contract isn't completed, I will be able to bill for time incurred but otherwise it's just an invoice at the end.
Many thanks for the help.