I have a customer who booked with me, with staggered payments spread over the year. He paid 50% and then nothing. He was chased repeatedly and given a deadline and as per my terms and conditions of booking, the booking was cancelled due to breach of contract and the 50% he paid was retained by my company (Not kept on account for the customer). Customer was fine with this btw. My question is how do i account for this on quickfile. Initial invoice (Now over 11 months ago and HMRC VAT locked). I need to credit the full invoice value to wipe out the value of the invoice. But he only paid 50% which my company has retained. As the invoice (9.5k) counted towards the turnover for end of year accounts i need to reduce the turnover by the value of the credit note but surely the credit note needs to be for the full invoice amount not just the 50% paid portion ? I cant figure out how this should be done within quickfile. As mentioned, the money isnt refunded back to the client, or kept of the customers account. The customer acknowledges he has ‘lost’ the 50%. Please help me on this as i have my year end account fast approaching and dont want to be paying corporation tax on the profit of this invoice.
Hello @topdrawcorporate
If the money comes into your bank account and you do not wish to show it as coming from the customer (debtors) where do you want to show it coming from (which nominal code)?
This is probably a question best suited for your accountant for professional advice as we (the support team) are not registered accountants.