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Hi all,
I have a client who is using the 14 day rule to delay tax point on VAT sales invoices. The services were provided up to 31 March (so basic tax point is 31 march) but the vat invoice was issued and dated 1st of April 2026 using the 14 day rule the actual tax point is 1st April 2026 so vat is due within the April to June quarter.
He thinks that this then puts the income into the next tax year (26-27) for the year end accounts where-as I think that the 14 day rule is only applied to VAT and we would still need to accrue the income into the 25-26 tax year. I will leave his accountant to make the final decision on this but could anyone confirm or comment my understanding.
i.e. the 14 day rule applies only VAT tax and not to the year end accounts for corporation tax.
https://www.gov.uk/hmrc-internal-manuals/vat-time-of-supply/vattos5235
Thanks
Nell
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