VAT registration slowing me down

[Langkawi]

Hi,

A few quick questions on my VAT registration.

Forms went in a few weeks ago (about 6 methinks).

Haven't heard anything yet and agency is refusing to touch my Ltd until I have proof of VAT reg.

1. Is this normal for agencies or should I try to argue that it's pending to get the ball rolling?

2. Am I able to chase the VAT-man for this?

3. Is chasing the VAT-man a waste of time given all the MSC to Ltd conversions?

Cheers,
Alan

[tim123]

Hi,

A few quick questions on my VAT registration.

Forms went in a few weeks ago (about 6 methinks).

Haven't heard anything yet and agency is refusing to touch my Ltd until I have proof of VAT reg.

1. Is this normal for agencies or should I try to argue that it's pending to get the ball rolling?

2. Am I able to chase the VAT-man for this?

3. Is chasing the VAT-man a waste of time given all the MSC to Ltd conversions?

Cheers,
Alan

No, it's not normal for the agency to refuse to pay you.

Waiting for VAT registration is however quite normal and the agency should have procedures in place to cope with it.

You need to invoice the agency on a "Registration pending" basis for which they will pay the Ex-VAT amount and hold back the VAT part until the registration is received. This is all perfectly normal.

tim

[Bluebird]

Hi,

A few quick questions on my VAT registration.

Forms went in a few weeks ago (about 6 methinks).

Haven't heard anything yet and agency is refusing to touch my Ltd until I have proof of VAT reg.

1. Is this normal for agencies or should I try to argue that it's pending to get the ball rolling?

2. Am I able to chase the VAT-man for this?

3. Is chasing the VAT-man a waste of time given all the MSC to Ltd conversions?

Cheers,
Alan

1. can invoice without VAT reg - just don't include the VAT element on the invoice, you'll then need to invoice for just the VAT at a later date.

2. can chase the VAT man - good luck.

3. Yes.

[Francesco]

Ask your agency what they normally do.

If your agency agrees you can invoice including the VAT element. Your invoice should say "VAT registration pending, VAT invoice to follow."

Send a replacement VAT invoice once you have the registration number.

[Ivor1]

Hi,

A few quick questions on my VAT registration.

Forms went in a few weeks ago (about 6 methinks).

Haven't heard anything yet and agency is refusing to touch my Ltd until I have proof of VAT reg.

1. Is this normal for agencies or should I try to argue that it's pending to get the ball rolling?

2. Am I able to chase the VAT-man for this?

3. Is chasing the VAT-man a waste of time given all the MSC to Ltd conversions?

Cheers,
Alan

You agency cant do that its illegal apperently according to my accountant as I had the same problem. They just want to avoid the paperwork

[malvolio]

Agreed. You can invoice them with the endorsement "VAT Registration applied for" and invoice for the VAT separately at a later date when you have the paperwork and VAT number.

If they are refusing to pay you for work done on that basis, time to invoke late payment legislation, winding up orders and "See you in court, Jimmy" letters. And tell the client why you are not coming in to work for a while...

[misterlamott]

I'm in the same situation, however the agency are paying up minus the VAT. They say that all the company needs to do is send in a copy of the VAT certificate when it turns up and they will pay the back dated VAT on the invoices. I can see their point about not paying the VAT without proof of registration as at the end of they day they need to claim the VAT payments back, which I'm guessing they are totally unable to do without your companies VAT registration details.

Get the agency to cough up minus the VAT. Assuming you have registered for flat rate VAT (if not why not ) all you are really missing out on whilst waiting for the VAT man to get his butt in gear is the few % you are managing to cream off the top of the missing payments. If Mr VAT man hasn't processed your companies registration then he can swing for his money until he sorts out it out!! At the end of the day you are only really collecting the majority of the VAT for his coffers anyway.

Solution - get the agency to pay minus the VAT and go worry about something else like IR35.

[Burdock]

Just been on the blower to the VAT.

Apparently they are are working on applications received on 23rd March today.

Don't know at what speed though...

[misterlamott]

Just been on the blower to the VAT.

Apparently they are are working on applications received on 23rd March today.

Don't know at what speed though...

Did they mention which year they were referring to when they gave you that date?!

[gingerjedi]

I applied for VAT registration mid March and had my certificate through last week, so there’s a rough guide for anyone who’s waiting, I still haven’t had the FRS bit though.