Quick answer needed - sorry!

[MKCH]

Absolutely not an AIBU but I need a quick response! Sorry. As soon as I get the info I will ask for this thread to be removed....

I need to issue a refund to a client.

Client paid £10,000 plus VAT.

I need to issue a 50% refund.

Reeeeally daft question but will the refund include a VAT refund as well? As in it'll be £5000 + 50% of VAT paid?

TIA

Maybe I don't understand something but if you're self employed and/or in a position to manage client payments why is Mumsnet the place to ask this? Ask your accountant or a business advisor?

Essentially yes, but you need to word it correctly otherwise you may end up liable for the whole VAT amount on the £10k.

This page is helpful:
www.thefriendlyaccountants.co.uk/compensate-customers-lose-vat/

I don't have one 😬

(Full facts - I am a consultant to 'business X' and they do all of their own invoicing etc. I deal with this 'client Y' and so therefore need to inform Y of refund amount as they need to invoice X so X can pay them).

[quote bananapumpkin]Essentially yes, but you need to word it correctly otherwise you may end up liable for the whole VAT amount on the £10k.

This page is helpful:
www.thefriendlyaccountants.co.uk/compensate-customers-lose-vat/[/quote]
Smashing thank you!