Due to reaching the VAT threshold, I’ve had to recover the backdated VAT, which I did by sending a VATonly invoice (with help from the community).
I now have a problem that when it comes to tag in the bank for that customer. I have the VAT invoice that I sent plus the invoices part-paid that I need to pay as well.
For instance, I used the payment to update the vat owed on the invoices, but now unable to tag the VAT invoice.
I hope this makes sense?
Can you let me know how to get around this, please?
Sounds like you should have done one or the other and not both.
If you had just created a vat only invoice payment could have been tagged to that. But you also by the sounds of it edited old invoices to now include vat.
Cant do both. My suggestion is that you remove the vat from the invoices you added it to, de tag the payments and tag them back to the vat only invoice.
My accountant told me I needed to update the invoices which I did, then ask the costumers for the balance. The majority, sent the payment, but 2 costumers asked me to invoice them.
What will this do to the books, when it comes to paying HMRC?
The two customers that you have invoiced for the VAT you will need to amend the original invoice to not include the VAT otherwise you are accounting for VAT twice when that hasn’t actually happened.