Credit Note

CassCass Member Posts: 2

Hello,

I've read many discussions about the lack of a credit note feature.Please could someone explain how I get over the following issue.

I have a client who paid their deposit invoice in a previous VAT period. Subsequently they have been in touch to say they qualify for 5% VAT rather than the usual 20% VAT which was on the previous invoice.

I thought I could issue a credit note for the whole invoice and reissue with 5%, but this doesn't seem possible. They have to pay a balance invoice next week so I can issue that invoice at 5% VAT but I still need to find a way to make the previous amount have 5% VAT.

Thanks in advance.

Comments

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    Have you verified that they are right in their contention that you should have charged 5% VAT? The onus is on you to be able to prove you charged the correct VAT rate if challenged by HMRC. I know this isn't answering the credit note issue but just wanted to make sure you weren't simply acting on the instruction from your customer alone.

    There has been a recent post by one of the admins for a convoluted work around on credit notes that you probably need to follow to achieve the result you need.

  • CassCass Member Posts: 2

    Thanks Andrew, yes I've checked and they do qualify.

    I'll track down the post.

    Many thanks

  • BarsinABarsinA Administrator Posts: 260 admin
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