Contractor UK Bulletin Board - View Single Post - How to Calculate Late Payment Interest for Multiple Invoices?

VectraMan · 25th July 2008, 09:36

Does anyone know how the VAT works?

I found something saying you should calculate the debt from the gross amount, but you shouldn't add VAT onto the late payment charge or interest.

Is it VAT exempt (i.e. I charge £70 and add nothing to my VAT return), or is it that the gross has to be £70 (£59.57 + VAT)?

25th July 2008, 09:36	#7
VectraMan Super poster Join Date: Dec 2005 Location: Oxfordshire Posts: 2,628	Does anyone know how the VAT works? I found something saying you should calculate the debt from the gross amount, but you shouldn't add VAT onto the late payment charge or interest. Is it VAT exempt (i.e. I charge £70 and add nothing to my VAT return), or is it that the gross has to be £70 (£59.57 + VAT)?