HI all I have fee-refund clauses in my terms of business for a set period on a sliding scale. How do I account for this in quick file? I guess I can always issue a credit note for any amounts refunded, but I’m confused about the VAT element? Can anyone help with this please? Do I have to pay the VAT due in a given quarter, and then IF there is a refund of part / all of the fee and VAT, how will I manage that with regards to HMRC and the VAT? TIA for any help on this Best regards Steve
You can adjust VAT through credit notes. You have 14 days to issue a credit note from the date that the actual refund is made, which must be adjusted in the same VAT period in which the refund is given or received.