Do you handle reverse charge correctly?

Yes. Reverse charge VAT is handled correctly and automatically.

WBudget includes a dedicated Reverse Charge toggle that ensures your invoices comply with UK VAT legislation when the reverse charge mechanism applies. When enabled, the system automatically inserts the correct statutory wording on the invoice, such as “Customer to pay the VAT to HMRC”, removing ambiguity for both parties and ensuring the document meets HMRC expectations.

Unlike generic invoicing tools that rely on manual notes or workarounds, WBudget is designed to reflect the actual VAT responsibility in reverse charge scenarios. This means VAT is not added to the invoice total when it is not due, preventing overcharging and reducing the risk of compliance errors. Your customer is clearly informed of their obligation to account for VAT directly to HMRC, exactly as required under UK rules.

From a reporting perspective, reverse charge transactions are treated correctly throughout the system. Invoice totals, summaries and financial reports reflect the mechanism accurately, ensuring that VAT is excluded where appropriate while still being clearly documented. This makes reconciliation simpler and avoids inconsistencies between issued invoices, internal records and what is ultimately reported to your accountant or submitted via Making Tax Digital processes.

The reverse charge functionality is particularly useful for UK businesses operating in sectors where the mechanism commonly applies, such as construction services, cross-border services within the UK VAT framework, or B2B transactions where VAT liability shifts to the customer. By handling the wording, calculations and totals automatically, WBudget helps reduce the risk of human error that often occurs with spreadsheet-based invoicing or manual invoice editing.

In practical terms, this means you can:

• Enable reverse charge with a single toggle when creating or editing an invoice
• Trust that the legally required wording is applied consistently
• Issue invoices that do not incorrectly include VAT in the total
• Maintain clean, accurate records for audits and VAT reviews
• Save time by avoiding manual checks or custom invoice notes

Overall, WBudget ensures that reverse charge VAT is clear, compliant and correctly reflected across invoices and reports. This allows you to invoice with confidence, knowing that your documentation aligns with UK VAT requirements and supports transparent, professional communication with your customers.