Readers' forum: A matter of timing

A matter of timing

Tax point dilemma on VAT invoice of building business.

One of my clients a major building contractor recently submitted its VAT return for the quarter ended 30 June 2019. This was its first return under the new Making Tax Digital procedures.

The return was for a £50 000 repayment which concerned my client (the business normally pays tax) so he asked me to review the figures.

I identified that a final invoice – relating to a major contract for building work undertaken for a hotel group – was issued on 3 July for just over £600 000 plus VAT. In fact my client finished the job on 12 June.

Apparently he and the surveyor in charge of the job took a long time to agree the final account not helped by the fact that they both had weeks away from the office due to holidays.

My...