Agency taking time to pay VAT

[Kowalski]

Been ltd for about 4 months, first contract I never invoiced the agency for VAT as I wasn't VAT registered at the time. I am now VAT registered from day one so I need to claim the VAT back on my first contract.

I asked my agency first in December then Janaury and several times since then, each time they say they will look into it and get back to me.

I will need to pay the VAT man by the end of this month, any way I can make the agency get their finger out?

[MikeC1408]

Have you sent them a VAT invoice?

Did you first invoices state 'VAT Registration Pending' or something similiar?

[Ardesco]

Phone the VAT help line and ask them what they suggest. I'm sure that they'll be interested....

[Kowalski]

No I never sent them a VAT invoice even though I have constantly asked the agency if they require this each time I contact them and they have said no. I am going to send them one this evening.

Spoke to the VAT Helpline, basically I have changed agency's now so this will be a one off. The VAT people said do my return as normal at the end of this month and let them know if I still haven't been paid (luckily I have enough to cover the VAT) and the VAT people will get their debt recovery people onto it if it needs to go any further.

Thanks for the help.

[aikidoka]

Have you sent them a VAT invoice?

Did you first invoices state 'VAT Registration Pending' or something similiar?

This is a question I've had...

I'm just about to start my first contract, got the ltd co. off the ground went to the HMRC website and downloaded the VAT1 form, sent it in the first week of jan (hoping to get registered by the time I submit my first invoice at the end of feb). I had it returned to me last week saying it was an old version (only 2 years out of date!), and would I mind filling in the new form. Filled in and sent back... but it is doubtful that I will get my VAT registration number back in time.

My accountant has advised that I still submit invoices with VAT on them and just put on them (next to the heading VAT Number) "Registration being processed". From the sounds of your reply, this is the way to go - after all, the worst they can do is to refuse to pay the VAT until I give them the number and then pay me all the VAT owed once I give them the number.

[r0bly0ns]

That goes against the advice I was given by my accountant, which was "DO NOT CHARGE VAT UNTIL YOU ARE REGISTERED - IT IS AGAINST THE LAW!"


What I was told to do was invoice without VAT, and if the VAT office back dates your registration, submit VAT only invoices for all sales invoices that had been sent out, attaching a copy of the registration certificate.
Which is exactly what happened and our clients paid up no problems.

[TheFaQQer]

That goes against the advice I was given by my accountant, which was "DO NOT CHARGE VAT UNTIL YOU ARE REGISTERED - IT IS AGAINST THE LAW!"


What I was told to do was invoice without VAT, and if the VAT office back dates your registration, submit VAT only invoices for all sales invoices that had been sent out, attaching a copy of the registration certificate.
Which is exactly what happened and our clients paid up no problems.

Yes - that's right. Until you get the VAT certificate with a date on it, you don't know whether you should be charging it or not.

Invoice ex-VAT but "VAT registration pending" on the invoice. Then when the certificate comes through, invoice them JUST for the VAT. If they fail to pay, then talk to the VAT helpline - it's their money after all.

If you charge VAT without being registered, that's tax fraud.

[PAH]

Yes - that's right. Until you get the VAT certificate with a date on it, you don't know whether you should be charging it or not.

Invoice ex-VAT but "VAT registration pending" on the invoice. Then when the certificate comes through, invoice them JUST for the VAT. If they fail to pay, then talk to the VAT helpline - it's their money after all.

If you charge VAT without being registered, that's tax fraud.

That's what I've done in the past when setting up new companies for contracting through, issue a VAT invoice once the VAT details come through.


I wonder if there's the possibility to add a clause to the bottom of invoices saying late payment will incur interest, accruing on a daily basis? Should be feasible I think, if using a reasonable interest rate, and the contract states the payment terms the agency should adhere to.

[r0bly0ns]

That's what I've done in the past when setting up new companies for contracting through, issue a VAT invoice once the VAT details come through.


I wonder if there's the possibility to add a clause to the bottom of invoices saying late payment will incur interest, accruing on a daily basis? Should be feasible I think, if using a reasonable interest rate, and the contract states the payment terms the agency should adhere to.

http://www.payontime.co.uk/ has all the details about this

[TheFaQQer]

That's what I've done in the past when setting up new companies for contracting through, issue a VAT invoice once the VAT details come through.


I wonder if there's the possibility to add a clause to the bottom of invoices saying late payment will incur interest, accruing on a daily basis? Should be feasible I think, if using a reasonable interest rate, and the contract states the payment terms the agency should adhere to.

Unlikely - it's not you that's owed the money. It's the VAT man - if they don't get the money, they will send the boys round.