Agency holding off paying VAT only invoice

[pisces]

Do they begin with S?

My agency did the same thing to me stating 'it was policy to wait 4 weeks' or some crap like that. I got it in the end after much dragging of their heels.

[BoredBloke]

Speak to the Vat people and explain what they are doing and find out the legalities of it - I've never heard of the agency having to apply for something before they can pass VAT on. Sounds like they are taking the pi55 to me.

[WindyAnna]

Just a thought - lots of finance systems don't cope well with VAT only invoices and so the invoice ends up getting put on as a bodge and they then have to mess around and manually adjust the VAT return. I may be being excessively nice to them but maybe this is the problem? If so the way round it (and, in fact, the correct accounting process since the service and the VAT should really be on the same invoice) is to credit the invoices you raised at 0 VAt and the VAT only invoice and then re-issue the invoices with VAT. Net result is the same and the amount owed to you on their AP system will equal the VAT only invoice.

Windy

[poser]

Just a thought - lots of finance systems don't cope well with VAT only invoices and so the invoice ends up getting put on as a bodge and they then have to mess around and manually adjust the VAT return. I may be being excessively nice to them but maybe this is the problem? If so the way round it (and, in fact, the correct accounting process since the service and the VAT should really be on the same invoice) is to credit the invoices you raised at 0 VAt and the VAT only invoice and then re-issue the invoices with VAT. Net result is the same and the amount owed to you on their AP system will equal the VAT only invoice.

Windy

I can appreciate this but they are still earning interest on that money.

[Hevra]

It sounds a bit of a dodge to me but I've only ever worked with one system so my comments are likely to be of limited value. We pay back vat in the next available payroll run (weekly), I don't know what it is they're applying for...

Hevra

[ruth11]

To be honest, from what the agency guy said, the accounts department didn't really want to take responsibility for it - maybe cos of all the hassle that WindyAnna was talking about, I don't know.
He told them that I was now seeking legal advice (I didn't say anything of the sort) and they've promised him they'll pay this week. Guess I'll find out on Friday!
And no, the agency name doesn't begin with 'S'.
Thanks for your replies

[TheFaQQer]

To be honest, from what the agency guy said, the accounts department didn't really want to take responsibility for it - maybe cos of all the hassle that WindyAnna was talking about, I don't know.
He told them that I was now seeking legal advice (I didn't say anything of the sort) and they've promised him they'll pay this week. Guess I'll find out on Friday!
And no, the agency name doesn't begin with 'S'.
Thanks for your replies

So, did they pay you?