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VAT treatment on installment payments at VAT deregistration

VAT treatment on installment payments at VAT...

I have just deregistered for VAT, and wonder how to deal with the VAT on the monthly instalments I have received in advance. Many clients do this, who are then invoiced when the accounts are produced. Under cash accounting, the VAT has all been paid to HMRC. What is best practice? Do I need to raise VAT interim invoices now, or is there another way to do it? I would prefer not to make a big deal to my clients of my deregistering.
Obviously the clients not paying in advance will be invoiced without VAT when the time comes.


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By tom123
24th Feb 2016 16:25

Tax point

I am not sure why you would not give the clients VAT invoices at the time the payments were received, under the tax point rules? - or am I missing something?

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