Claiming VAT on Invoices

[JRCT]

I'm on self-billing and I still have to create an invoice for my accounts, but I don't have to issue it to the agency (ie. they don't need to see it).

Once you've got this all sorted and you're back on track, you may want to confirm whether this will be the same for you going forward.

[TheFaQQer]

I'm on self-billing and I still have to create an invoice for my accounts, but I don't have to issue it to the agency (ie. they don't need to see it).

Once you've got this all sorted and you're back on track, you may want to confirm whether this will be the same for you going forward.

You don't have to create an invoice for your accounts, you just need to make sure that it is accounted for. I've done self-billing a few times and have never created an invoice for my accounts - I've always used the invoice that the agency created for me.

[haverer]

Thanks guys. It is all new territory and in fairness I should have been on this forum before I started and done more research rather than depend on my Accountant.

I will hopefully get this sorted and get back on track! Very useful forum and thanks for the advice.

[JRCT]

You don't have to create an invoice for your accounts, you just need to make sure that it is accounted for. I've done self-billing a few times and have never created an invoice for my accounts - I've always used the invoice that the agency created for me.

One of the downfalls of using an online accountant. I have to register the invoice within the software. Which means raising one, even though I don't really need to. It's not a hassle as it's set up as a recurring invoice, so once it's set up I would only have to intervene in weeks where I wasn't invoicing for 5 days.

It still has to be done, though.

[TheFaQQer]

One of the downfalls of using an online accountant. I have to register the invoice within the software. Which means raising one, even though I don't really need to. It's not a hassle as it's set up as a recurring invoice, so once it's set up I would only have to intervene in weeks where I wasn't invoicing for 5 days.

It still has to be done, though.

Ah, OK. I just enter the details from the self-billing invoice into the InTouch portal.

[acnm]

I would expect any good agency and any good accountant to have noticed this and informed you.

It's never too late to invoice for VAT - it's quite common to do this if for example your VAT number doesn't arrive before your contract starts. Most companies have no issue with paying backdated VAT.

Personally I use Crunch accounting as they generate invoices and mail them direct to the agency and/or client automatically.

[TheFaQQer]

I would expect any good agency and any good accountant to have noticed this and informed you.

It's never too late to invoice for VAT - it's quite common to do this if for example your VAT number doesn't arrive before your contract starts. Most companies have no issue with paying backdated VAT.

Personally I use Crunch accounting as they generate invoices and mail them direct to the agency and/or client automatically.

It's never too late to invoice for VAT, as long as the previous invoices have been prepared properly and the rate that was agreed explicitly states that it is inclusive or exclusive of VAT at the prevailing rate.

If they haven't then the struggle starts now.

[jmo21]

Thanks for the replies guys. I have 'Self billing' from the Agency but there is no VAT details on them even though I did supply the Agency with these details when I started.

I agree - my Accountant should have advised me of this when I first met him but there was no mention of it. Wish I had done more research myself. I have contacted the Agency and will bill them separately for the VAT.

Thanks again.

Sounds like an agency mistake then, though you really should have noticed you were receiving 20% less than expected.

[TheCyclingProgrammer]

Yes I am on self-billing. Will hopefully get it sorted, thanks again for the replies.

Then your agency should have sent you copies of the invoices (they are still YOUR invoices) and they should have added VAT. But they wouldn't have done this unless you told them you are VAT registered and supplied evidence of this (VAT registration certificate).

You're going to have to speak to them about this and get them to either re-issue the invoices or accept a VAT only invoice for the missing VAT. They have every right to grumble about this as its a PITA but they shouldn't deny it - the VAT should have been charged and they can't dispute that.

Edit: read your above post. If you gave them your VAT details, then it sounds like they've cocked up. Get them to fix it.

[TheCyclingProgrammer]

You don't have to create an invoice for your accounts, you just need to make sure that it is accounted for. I've done self-billing a few times and have never created an invoice for my accounts - I've always used the invoice that the agency created for me.

it depends on the system you use...for example in FreeAgent, you can just use self-billed invoices and record payments as "Sales" when you reconcile your bank account BUT, if the payment is later than the invoice date and falls into a different VAT quarter, FreeAgent will allocate the sale to the wrong VAT period as you can't specify an alternative date/tax point when reconciling bank transactions.

Hence, when I get a self-billed invoice, I create a duplicate in FreeAgent that I can allocate the payment to and ensure it goes into the right VAT return.

Its true however that the self-billed invoice is the correct one to keep for VAT purposes and you shouldn't send your own invoice to anybody.