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An alternative is to issue VAT only invoices in an attempt to recover the VAT which should have been charged i.e. This is appropriate where the customers can recover VAT and there is a reasonable prospect that at least some of the invoices will be paid.

It is recommended that business checks with its customers prior to issuing VAT only invoices.

This allows you to bring your VAT returns up to date before you go back to your normal pay and file pattern.

If you are a direct debit customer, you only have to submit one VAT return per year.

However, if payment is not received, bad debt relief can be claimed after 6 months.

Schedule 1, paragraph 9(a), entitles a person who is not, and is not required to be VAT registered to register for VAT if he can satisfy HMRC that he is in business and is making taxable supplies.If your bank returns your payment as unpaid, we will not try to collect the payment a second time.A letter will be sent to inform you that the payment was unsuccessful.You can cancel your direct debit at any stage through ROS.Once the direct debit is cancelled, you will receive a short annual return to complete.

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