I'm starting to get frustrated with a client and how he is trying to work the figures... especially with the VAT Returns.

He's collecting payments in advance but doesn't want them recorded straight away - so the invoicing and VAT isn't picked up until the following quarter's return.  To me it just seems wrong and asking for problems, but he tells me his he keeps telling me his last accountant would do it and didn't have a problem.

Is this really a big issue?  I don't want to lose the client but I also don't want to be doing the wrong thing.

Thank you

I'm just back from a week away, and had almost forgotten this since playing catch up today but thanks for pointing me to that Peter!

I knew there could be a lot to it, but from looking at the VAT Notice 700 it seems quite clear from section 14.2.2(a) that he should be declaring this when he receives the payment.

I will point him to this so he can see for himself. I'm hoping he's not going to be difficult about it but I'll see what he says, and find out for sure in a couple of months!

Thank you