Cancelled Flat VAT registration accountant company has not raised VAT invoice on work

[Southern123]

Good Evening

I have cancelled my Flat VAT registration from 14.09.2017. This was done through my agent (accountancy company) but they have not raised VAT invoices on pay of £8600 (work performed before cancellation) from my agency, my question is can the accountants still raise VAT invoices on my behalf for work performed before the cancellation date ahead of submission of the final VAT return submission date of 13.10.2017. They were asked to raise the invoice before cancelling my registration. Quite stressed as do not want to pay HMRC 16.5% out of my own pocket!

[SueEllen]

Sorry don't get you.

If you cancel your flat rate VAT registration you go on to standard rate VAT so you lose nothing.

If you have de-registered from VAT completely then you don't invoice the agency for VAT. So again you lose nothing.

Someone else checked up whether you can do such things mid-way through a quarter and found you are allowed to.

[Lance]

Good Evening

I have cancelled my Flat VAT registration from 14.09.2017. This was done through my agent (accountancy company) but they have not raised VAT invoices on pay of £8600 (work performed before cancellation) from my agency, my question is can the accountants still raise VAT invoices on my behalf for work performed before the cancellation date ahead of submission of the final VAT return submission date of 13.10.2017. They were asked to raise the invoice before cancelling my registration. Quite stressed as do not want to pay them 16.5% out of my own pocket!

if you've cancelled flat rate you are probably still VAT registered so would need to pay 20%

You seem to have agent and accountancy firm mixed up.
All invoices prior to 14/9 need to have 20% VAT on them.
All invoices after that also need to have 20% VAT on them (unless you're de-registered completely from all VAT - which seems unlikely).

Have you discussed this with the accountant?

And bluntly. If VAT is owed then it should be charged. If an admin cock-up means that VAT hasn't been charged when it should have then the invoice needs to be re-issued correctly. This is simple enough and common as mistakes happen.

Don't stress. Just talk to them.

[Southern123]

I have completely left the flat VAT scheme but told the accountants to raise a VAT invoice on seven payments from my agency between May and September 2017 as the agency had not paid the VAT.
The accountants told me that they would raise the VAT invoice before cancelling me from the scheme

[Lance]

I have completely left the flat VAT scheme but told the accountants to raise a VAT invoice on seven payments from my agency between May and September 2017 as the agency had not paid the VAT.
The accountants told me that they would raise the VAT invoice before cancelling me from the scheme

still makes no sense. Whether you are on flat rate or not is immaterial.
VAT must be charged at 20% unless you completely de-register.
You can only do that if you stop-trading, or your turnover is below £83,000.
If you turnover more than £83k then you should still be charging VAT @ 20%

I would also question why you didn't leave the flat rate scheme on 1st April this year. Your accountants sound a bit tulip to be honest.

[Southern123]

They are useless happily take the monthly fee but do very little for it.

I received a letter from the HMRC today confirming the cancellation and stating the following 'You must not charge VAT, issue VAT invoices, or show your VAT registration number on any invoices you issue'

[Lance]

They are useless happily take the monthly fee but do very little for it

Sack 'em.

[northernladuk]

Why is your accountant raising invoices for you??

Surely you wanted to come off the FRS, not out of VAT completely?

[Southern123]

Why is your accountant raising invoices for you??

Surely you wanted to come off the FRS, not out of VAT completely?

It is a very complicated story basically I have now gone over to an Umbrella company. My public service end client determined that I was in scope of IR35 I appealed against their decision and my money had a block on it so the Agency gave me £8600 of advances in the period between Fri 07th April right up until Fri 08th September. The agency has decided that these will be last payments into my limited company and the payments will be subject to Corporation tax. That is why a VAT invoice was not originally raised. Normally the Agency have a self billing system set up with the accountants

[Lance]

It is a very complicated story basically I have now gone over to an Umbrella company. My public service end client determined that I was in scope of IR35 I appealed against their decision and my money had a block on it so the Agency gave me £8600 of advances in the period between Fri 07th April right up until Fri 08th September. The agency has decided that these will be last payments into my limited company and the payments will be subject to Corporation tax. That is why a VAT invoice was not originally raised. Normally the Agency have a self billing system set up with the accountants

So they were getting your money, and giving you some of it as an advance for 5 months.
And have now ****ed up your VAT position. And your accountants are useless.

I guess that all the money via the Umbrella is now correct (they will be charging VAT by the way). And you still need to account for VAT for April-September.

You really need a new accountant who can clean this tulipshow up. Especially as you were declared inside IR35 from April but have not been paying the relevant PAYE/NICs (or that's how I read it).