How To Calculate VAT on Settlement Discounts: A reminder of the changes

VAT and the NEW settlement discount rules

Are you ready for your head to hurt!?! Up until 31 March 2015, suppliers making offers of early settlement discounts were permitted to put on their invoice (and account for), the VAT due on the discounted price, even if the full price (i.e. the non-discounted amount) was subsequently paid. However, HMRC have changed the rules, so […]

How to Calculate Settlement Discounts

How to Calculate Settlement Discounts

How do you to Calculate Settlement Discounts? PLEASE NOTE, HMRC INTRODUCED NEW RULES IN APRIL 2015 – TO UPDATE YOURSELF ON THE NEW RULES, PLEASE SEE OUR BLOG HERE Whilst there are new rules in place, you still have to know how to calculate settlement discounts (now known as Prompt Payment Discounts), so hopefully you will […]