Should you issue a VAT invoice/Schedule for payments on account?

If i offer a service but ask my customers to pay upfron by means of Standing Order, should i issue them with a Schedule of the payments and VAT before hand even though i have not carried out the work. At present I am paying the VAT over once the job is complete and I have issued a full invoice.. Please help!

Answer:
See the standard VAT guides available from HMRC website (section 14 of VAT Notice 700). The rules for tax points tell you when to raise a VAT invoice. If memory serves (and it may not) VAT invoices get raised on the earlier of

1) The performance of the service
2) When the cash for the service is paid

You have to account for the VAT in the return period when you had to raise an invoice according to the rules. Up until then you can issues a schedule or a proforma invoice which dont have a VAT effect.

You should ask your local VAT office (they are generally quite helpful) or take professional advice. There is a lot more to it than this and a lot depends on the what, where, when and how of the supplies being made. VAT Notice 700 is a good basic guide though.
I personally would issue a pro-forma invoice, when the payment has been received, and the works carried out, then issue a VAT invoice, noting that your client has paid in full.

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