Client not wanting to pay VAT

[cojak]

I always state 'plus VAT' for every quote as I got caught out with an agency early in my contracting business.

[Gumbo Robot]

As this is a bit of work that I have pulled in privately I guess there's nothing to stop me from getting the client to pay into my personal account. I mean, I don't have to do this via my Ltd....

[Batcher]

You forgot the important bit. And client is a charity so this wasn't a b2b transaction in their eyes.

And many charities are ran by the well meaning clueless

And many are run by people on six figure salaries.

[d000hg]

And many are run by people on six figure salaries.

And those ones would be familiar with VAT.

[VelcroPower]

If you are billing the charity and it is registered and entitled to exemption you can invoice them exempt of VAT providing they provide you with the relevant evidence.

https://www.gov.uk/vat-charities/how-to-claim-relief

Just make sure your accounting software takes account of it properly and you charge it out exempt or you'll lose out.

[Gumbo Robot]

If you are billing the charity and it is registered and entitled to exemption you can invoice them exempt of VAT providing they provide you with the relevant evidence.

https://www.gov.uk/vat-charities/how-to-claim-relief

Just make sure your accounting software takes account of it properly and you charge it out exempt or you'll lose out.

Hmm interesting; I'll certainly look into that thanks. They're trading as an LLP; don't know if this is normal for a charity - I mean does a charity have to operate through some kind of vehicle like a Ltd?

[webberg]

Hmm interesting; I'll certainly look into that thanks. They're trading as an LLP; don't know if this is normal for a charity - I mean does a charity have to operate through some kind of vehicle like a Ltd?

A charity by definition does not trade.

You may find that the charity is a trust with the various VAT exemptions etc but that its trading entity is a company/LLP because this separates the trading (VATable) part of the operation from the non trading (non VATable) part.

The profits of the trading entity are then gifted or donated to the non trading part.

Some of the bigger charities are very careful in this way.

[GillsMan]

As this is a bit of work that I have pulled in privately I guess there's nothing to stop me from getting the client to pay into my personal account. I mean, I don't have to do this via my Ltd....

You'd need to be PAYE'd for that I'd presume.

[TheCyclingProgrammer]

If you are billing the charity and it is registered and entitled to exemption you can invoice them exempt of VAT providing they provide you with the relevant evidence.

https://www.gov.uk/vat-charities/how-to-claim-relief

Just make sure your accounting software takes account of it properly and you charge it out exempt or you'll lose out.

But bear in mind if OP is on the flat rate scheme, he will still have to pay flat-rate VAT on the supply even though its exempt.

[Platypus]

You'd need to be PAYE'd for that I'd presume.

Er, why? Do it as self-employed. You could even remember to list it on your tax return