Backdating vat

They must, however, be entered as the original invoice date, as entering them using a date within the current accounting period will treat them as sales or expenses of the current year and you will potentially pay tax, or obtain relief on them, twice.Once these entries have been made, you can press the "Finished Backdating" button.To guarantee your Crunch account figures are accurate, we need all transactions entered into the system to be dated from your new accounting year with Crunch.To make this simple we've created a few features to assist you.In April 2017, there is a major change to the Flat Rate Scheme (FRS) affecting low "cost" businesses.From 1 April 2017, HMRC will introduce a new category, of a "limited cost trader", with a flat rate of 16.5%.

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including; invoices and receipts, a description and purchase dates and information about how they relate to your business now.A 2015 VAT case considered the rules regarding recovering VAT incurred before the effective date of registration.What can clients do to maximise the amount of pre-registration VAT they are entitled to claim, and are there any traps to consider?The good news is you can reclaim VAT added to certain expenditure that was paid out prior to your business registration for VAT.HMRC’s instructions on this issue confirm: There is a time limit for backdating claims for VAT paid before registration.

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