Backdating VAT - payment date or actual work done
+ Reply to Thread
Page 1 of 2 1 2 LastLast
Posts 1 to 10 of 14
  1. #1

    Nervous Newbie


    Join Date
    Feb 2015
    Posts
    1
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Backdating VAT - payment date or actual work done

    Hello,

    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.

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,780
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6027

    Default

    This is really why you pay for an accountant. Get him to explain the whole thing to you so you know for next time... You may actually learn something now you can avoid tripping over in the future...

    You do have an accountant don't you????
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #3

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,390
    Thanks (Given)
    38
    Thanks (Received)
    245
    Likes (Given)
    211
    Likes (Received)
    679

    Default

    All invoices after and including 10/1 should have VAT. Tell your agent to speak to their finance department for a lesson on how VAT works. Your time sheets are not relevant, the invoice date is.

    If you are on self billing and they refuse to reissue a valid VAT invoice then tell them you will be invoicing them for the VAT separately and if it's not paid you will pursue the debt like any other.

  4. #4

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,390
    Thanks (Given)
    38
    Thanks (Received)
    245
    Likes (Given)
    211
    Likes (Received)
    679

    Default

    Quote Originally Posted by northernladuk View Post
    This is really why you pay for an accountant. Get him to explain the whole thing to you so you know for next time... You may actually learn something now you can avoid tripping over in the future...

    You do have an accountant don't you????
    To be fair to OP, they do seem to know what is correct - it's the agent that doesn't have a clue.

  5. #5

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,780
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6027

    Default

    Quote Originally Posted by TheCyclingProgrammer View Post
    To be fair to OP, they do seem to know what is correct - it's the agent that doesn't have a clue.
    To be fair you could be right but am not 100% convinced the story is clear here.

    The thread below indicates he must state in the invoices that VAT Reg is applied for or some indication it's on it's way.

    http://forums.contractoruk.com/accou...t-invoice.html
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  6. #6

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,390
    Thanks (Given)
    38
    Thanks (Received)
    245
    Likes (Given)
    211
    Likes (Received)
    679

    Default

    Quote Originally Posted by northernladuk View Post
    To be fair you could be right but am not 100% convinced the story is clear here.

    The thread below indicates he must state in the invoices that VAT Reg is applied for or some indication it's on it's way.

    http://forums.contractoruk.com/accou...t-invoice.html
    If that's the case then I don't know why people don't insist on having clauses in their contract that state that clients will be liable to any VAT in the event of the supplier becoming VAT registered. Seems like this would cover this situation regardless of what the original invoice said.

    That said, given it costs the agency nothing as they presumably reclaim the VAT I can think of no good reason for the agency not to pay a VAT only invoice or reissue their original ones.

  7. #7

    Nervous Newbie


    Join Date
    Aug 2014
    Posts
    4
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Backdating VAT

    The finance department need a few lesson in VAT. If your effective date of registration is 10/1/15 then they must back date VAT from then onwards. I do not understand why they are saying they will only backdate the VAT after 10/1/15. If you haven't already, send them a copy of your VAT certificate and point out the effective VAT registration date. Ask them for a written explanation of why they refuse to pay VAT from the effective date.

    Regards
    Abbas Shah

    Hallam Jones Accountancy

  8. #8

    Nervous Newbie


    Join Date
    Mar 2015
    Posts
    2
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Late payment by 'clients' during your VAT compulsory period

    I am currently a contractor, supplying my services to a very large organisation, however their payment system means I get paid almost 35 to 45 days late. While their payments are delayed & I past my threshold for registration, for VAT.

    How will this effect me charging for VAT, I have missed at least 3 weeks worth of invoices that states ' Charge in Lieu for VAT invoice, a VAT invoice will be supplied once registration is complete'
    I have two questions:
    1) Do I just send a invoice request for VAT for the 3 weeks i have not stated this ?
    2) Once the registration certificate/number has been given to me, will HMRC request all invoices for the last 12 months VAT be paid to them ?

    Thank you newbie

  9. #9

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,390
    Thanks (Given)
    38
    Thanks (Received)
    245
    Likes (Given)
    211
    Likes (Received)
    679

    Default

    Will your VAT registration date pre-date those invoices or not? If it does I suggest you contact your client immediately and explain the situation and see if they will accept reissued invoices or a VAT only invoice.

  10. #10

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,780
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6027

    Default

    Quote Originally Posted by m17nny View Post
    I am currently a contractor, supplying my services to a very large organisation, however their payment system means I get paid almost 35 to 45 days late. While their payments are delayed & I past my threshold for registration, for VAT.

    How will this effect me charging for VAT, I have missed at least 3 weeks worth of invoices that states ' Charge in Lieu for VAT invoice, a VAT invoice will be supplied once registration is complete'
    I have two questions:
    1) Do I just send a invoice request for VAT for the 3 weeks i have not stated this ?
    2) Once the registration certificate/number has been given to me, will HMRC request all invoices for the last 12 months VAT be paid to them ?

    Thank you newbie
    You are getting paid 35-45 days LATE? Seriously ??
    'CUK forum personality of 2011' - Winner - Yes really!!!!

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.