VAT Cash Accounting Scheme

jilbo
jilbo Registered Posts: 197 Dedicated contributor 🦉
in General accounting discussion
Not sure of the rule here. When using the cash accounting scheme for VAT when are credit card purchases deemed to be paid for if the credit card balance is not cleared in full each month?

Comments

  • jilbo
    jilbo Registered Posts: 197 Dedicated contributor 🦉
    After more delving I believe it is according to the date on the sales voucher but sure if this is old info, can anyone confirm that please?
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    Yes, you can claim the VAT when it's paid by credit card. Imagine the hassle we'd have on clients who pay round amounts on their credit cards if we had to wait until the credit card has been paid :001_unsure:
  • jilbo
    jilbo Registered Posts: 197 Dedicated contributor 🦉
    Thanks Jodie, I totally agree, silly question really but wanted to be absolutley sure as my client's usual, or should I say 'previous' bookkeeper didn't record for VAT purposes any purchases made by credit card!
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    Hi

    You might like to get hold of VAT notice 731 if you are unsure on anything to do with cash accounting.

    In there it states

    "If you pay by credit or debit card: the date of payment is the date a sales voucher is made out for the payment."

    Which is sort of what has been concluded anyway

    Poodle

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