Vat reverse charge & cash accounting

Why do we have to account for reverse charge on an invoice date basis when using cash accounting?

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If preparing the vat on a cash accounting basis why do we have to account for reverse charge vat on an invoice basis, surely this is going to be confusing and end up with errors? I know HMRC notice tells us that this is the way we have to do it but why as it just complicates matters? 

Replies (10)

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By frankfx
21st May 2021 18:17

"VAT is a simple tax"

Anthony Barber Chancellor of the Exchequer.....1st April 1972 ish.

https://www.taxadvisermagazine.com/article/fresh-look-construction

May help you sleep tonight.

Thanks (1)
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By mikeyban
22nd May 2021 08:28

In reality though... if the sums are small .... you can either make an adjustment for the quarter to bring the position correct or do what the silent majority are doing and say stuff it...in reality I think that is what quite a few practitioners are doing...

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Replying to mikeyban:
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By Di
22nd May 2021 19:19

ie stuff it and just account for it when the cash goes out! So much for simplifying tax.

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Replying to Di:
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By mikeyban
22nd May 2021 21:21

I’m afraid Di that is my opinion on what in reality is happening... we are dealing with an organisation who polices the rules ...but have hung up on me twice recently because I boxed their operatives into a corner and I wanted to complain ...
then came the dialling tone as they hit the goodbye button...

I now start work at 8.00 am to get through......

Whilst they are policing us who is policing them ...

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Replying to Di:
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By mikeyban
22nd May 2021 21:21

I’m afraid Di that is my opinion on what in reality is happening... we are dealing with an organisation who polices the rules ...but have hung up on me twice recently because I boxed their operatives into a corner and I wanted to complain ...
then came the dialling tone as they hit the goodbye button...

I now start work at 8.00 am to get through......

Whilst they are policing us who is policing them ...

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Replying to Di:
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By mikeyban
22nd May 2021 21:21

I’m afraid Di that is my opinion on what in reality is happening... we are dealing with an organisation who polices the rules ...but have hung up on me twice recently because I boxed their operatives into a corner and I wanted to complain ...
then came the dialling tone as they hit the goodbye button...

I now start work at 8.00 am to get through......

Whilst they are policing us who is policing them ...

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Replying to Di:
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By mikeyban
22nd May 2021 21:21

I’m afraid Di that is my opinion on what in reality is happening... we are dealing with an organisation who polices the rules ...but have hung up on me twice recently because I boxed their operatives into a corner and I wanted to complain ...
then came the dialling tone as they hit the goodbye button...

I now start work at 8.00 am to get through......

Whilst they are policing us who is policing them ...

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blue sheep
By NH
22nd May 2021 09:21

what software are you using? surely that deals with it in whatever way it should, either way unless you are PE it will make no difference to what you pay

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RLI
By lionofludesch
23rd May 2021 07:44

Why? No reason at all. Absolutely pointless provision and there's a good chance that the draftsman just didn't understand what he was doing when he wrote that.

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Replying to lionofludesch:
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By Di
23rd May 2021 13:46

Exactly!

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