Prompt Payment Discount (PPD) changes
HMRC are changing the rules regarding the treatment of VAT where PPD is offered (PPD is more commonly referred to as ‘settlement discount’).
From 1 April 2015, suppliers must account for VAT on the payment amount they actually receive from their customer; customers may then recover the VAT that is actually paid to the supplier. Where PPD is offered on or after 1 April, the supplier will now always show the full amount of VAT on the invoice.
More information can be found