A few small changes this week in Release 'Sauternes':
VAT on non-UK Invoices
FreeAgent now correctly handles VAT on invoices to non-UK clients. We assume you're supplying 'services' rather than 'goods', which for most people means that these invoices are 'outside the scope of UK VAT', which means we don't display any VAT at all.
For EU invoices, it's also a condition that you are supplying to businesses rather than consumers. We've added an EU-VAT Registration Number entry for your Clients which is displayed on the invoice (as 'Your VAT Registration Number') and is one way of demonstrating that you know it's a business you're supplying.
These invoices are still included in your total sales figures (Box 6 on the VAT return, for you VAT spotters out there) but, for those on the Flat Rate Scheme, they're not counted as part of the turnover to which the Flat Rate is applied.
Check out the HMRC guidance on Place of Supply here or get in touch with those nice people on the VAT Helpline (0845 010 9000) if you need to confirm that this is suitable for your situation, too.
PDF Generation Bugs
We've squashed a couple of bugs in generating PDF invoices and dividend vouchers for companies out there with '&' in their names.
New Client Countries
We've added China, Hong Kong and India to the list of selectable client countries.
Lots happening here in the coming weeks as we prepare for the launch of our international 'Universal' version. We will be continuing, though, to constantly add new UK tools based on our ideas and your feedback.
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.