I am an IT contractor, working for an agency with 21 days payment delay, where payment date is the same as invoice date they are raising on my behalf.
Just registered for the VAT with a start/effective date of 10/01/2015.
I've asked my agency to back date/back pay the VAT on all of the invoices dated 10/01/2015 and after.
What they said, they will only pay VAT for timesheets after 10/01/2015 - which means I will have some invoices dated 10/01/2015 without any VAT paid on it.
Are they correct? How do I explain this to the HMRC?
Any suggestions much appreciated.