An amendment to VAT legislation on prompt payment discounts (PPD) will come into force in April 2015 to clearly align UK VAT legislation with EU VAT legislation. This will affect any VAT registered businesses that offer their customers a prompt payment discount.
In the 2014 Budget this measure was announced to protect revenue by putting it beyond doubt that UK VAT legislation on PPDs is aligned with EU VAT legislation and ensuring VAT is accounted for on the full consideration paid.
Have you checked your system will comply with this new legislation? Can we help you to be ready for 1st April 2015?
HMRC VAT Prompt Payment Discount