Commentary

V7.403 Cash flow improvement—delaying issuing a tax invoice

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.403 Cash flow improvement—delaying issuing a tax invoice

Part V7 Tax planning | Commentary

V7.403 Cash flow improvement—delaying issuing a tax invoice

There is an old phrase in business that 'cash is king'.

A possible method of delaying a VAT payment to keep money in a client's bank account a bit longer is to delay issuing a tax invoice for ongoing contracts – instead issuing an alternative document such as a 'request for payment' or 'application for payment'. This is a common and perfectly legal technique, eg in the construction industry.

The reason why this approach is only appropriate for ongoing jobs is because the normal tax point rules for VAT require an invoice to be

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