Hi all - first post although have been contracting for many years.
I have recently started a new company - (to many issues with my old ltd co and accountant which I won't go into here but I wanted a clean start.)
The long and short if it is my old accountant advised me incorrectly for the last time and I needed to backdate my VAT registration of the new company to last March from November last year. No real issue as I spoke with HMRC VAT office and completed all the paperwork required and duly became registered in November (with effective date of March) for the new company.
So I recreated my monthly invoices including VAT from that period and provided them to the agency I work through and worked out how much VAT to pay over the HMRC which I did in December quarter end.
So far I paid out around £20k in backdated VAT - expecting my agent to resubmit his next VAT return including my updated invoices, reclaim the additional VAT as input VAT and settle with me (He is VAT registered and so had already rendered his own output VAT). He is now telling me that he has already paid over the VAT and has no money so can't ay me. He also said it takes months for HMRC to pay the money back to him so is not willing to upfront it. He has offered to pay me in drib and drabs over the next year.!
Is he correct in this - As far as I was aware its a simple case of submitting a negative figure on his VAT return and settling my invoices (happy to wait until he gets this remittance from HMRC).
Am I missing something.?
Thanks all
I have recently started a new company - (to many issues with my old ltd co and accountant which I won't go into here but I wanted a clean start.)
The long and short if it is my old accountant advised me incorrectly for the last time and I needed to backdate my VAT registration of the new company to last March from November last year. No real issue as I spoke with HMRC VAT office and completed all the paperwork required and duly became registered in November (with effective date of March) for the new company.
So I recreated my monthly invoices including VAT from that period and provided them to the agency I work through and worked out how much VAT to pay over the HMRC which I did in December quarter end.
So far I paid out around £20k in backdated VAT - expecting my agent to resubmit his next VAT return including my updated invoices, reclaim the additional VAT as input VAT and settle with me (He is VAT registered and so had already rendered his own output VAT). He is now telling me that he has already paid over the VAT and has no money so can't ay me. He also said it takes months for HMRC to pay the money back to him so is not willing to upfront it. He has offered to pay me in drib and drabs over the next year.!
Is he correct in this - As far as I was aware its a simple case of submitting a negative figure on his VAT return and settling my invoices (happy to wait until he gets this remittance from HMRC).
Am I missing something.?
Thanks all
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