Architect working on % fee - revised invoice / but VAT registered in-between!

[ContractorBanking]

I'm shocked you awarded 9% to the architect, surely that's just a recipe for increasing costs.

Presumably the architect is doing all project management for that 9% as well as direct architectural services?

Just sounds like a lot, I'd have agreed a fixed price.

[Support Monkey]

I'm shocked you awarded 9% to the architect, surely that's just a recipe for increasing costs.

Presumably the architect is doing all project management for that 9% as well as direct architectural services?

Just sounds like a lot, I'd have agreed a fixed price.

Hindsight, a marvellous skill to have.

I would be having a word and tell him he needs to lose it in his costs, and then try and negotiate a sensible settlement, I would be pointing out the tax point date as discussed and the fact he is on a percentage and not a fixed price, and the overspend is fairly excessive, did he work out the initial cost if so that would be a good bargaining tool.

[LondonManc]

Surely if it's gone up from 9% of 150k to 9% of 250k, it's simply a restatement of the original zero VAT invoice, given that the VAT rate was agreed for that piece of work. Any new WORK, not re-invoicing should be charged with VAT. I'd mention Darren's reply, as in "as per section 2.3 of <doc name>, the 250k is simply a restatement of an amount originally invoiced for at the tax point dated <original invoice date> and as such does not incur VAT. All invoices for tax points post your VAT registration date will be accepted as plus VAT."