Agency holding off paying VAT only invoice

**Lewis** · 22 October 2007, 14:14

Originally posted by ruth11 View Post

I've been registered for VAT now for nearly a month. I've been working for said Agency for 3 months. They pay me weekly. Immediately on receiving VAT number, I raised the VAT invoice they knew was coming (all prior invoices stated "VAT only invoice to follow").

So far, I've received 3 weeks worth of payments including VAT since I sent the number, but they've not paid the VAT only invoice yet. Apparently they have to apply for something before they can pay me? Surely if this were the case, they wouldn't be able to pay ANY VAT to me? Are they right and I just have to be patient or am I being stitched up here? VAT return payment is due end of November.

Yep, sounds funny to me. They should be able to pay all VAT immediately.

**MrRobin** · 22 October 2007, 14:26

They have to apply for something???

You don't say to the girl at the checkout at Tescos that you can't pay the VAT on the bill because you're waiting for your VAT application.... what a load of tosh. Re-bill with a big red OVERDUE plastered all over it.

**TheFaQQer** · 22 October 2007, 14:30

They will have already invoiced with VAT to the client, so should have no problem passing the money onto you.

Tell them that they need to pay this this week, as you need to be sending in your VAT return soon, and that if you have not received the payment then you will have to pass that information onto the VAT man.

It's not your money, or theirs - it belongs to the VAT man, therefore it's him that they are p1ssing off.

**Hex** · 22 October 2007, 14:30

Or politely suggest to them that if they can't pay the invoice straight away you will need to talk to HMRC to find out what the procedure is when a client is witholding VAT payments.

After all, this is money your are collecting for HMRC.

**ruth11** · 22 October 2007, 14:52

Thanks for confirming my suspicions.
I've just called the Agency guy to chase again and his response was that his accounts department keep trying to blind him with science when he chases on my behalf but will chase again.
I've said that I feel like I'm being stitched up by them now. Hopefully he'll call me back with something positive but if nothing at the end of the week when I get paid, I'll put something in writing.

**TheFaQQer** · 22 October 2007, 14:56

Originally posted by ruth11 View Post

Thanks for confirming my suspicions.
I've just called the Agency guy to chase again and his response was that his accounts department keep trying to blind him with science when he chases on my behalf but will chase again.
I've said that I feel like I'm being stitched up by them now. Hopefully he'll call me back with something positive but if nothing at the end of the week when I get paid, I'll put something in writing.

It's not a case of you being stitched up - after all, it's not your money. I guess that if you explain to him that if they fail to pay you, they are committing VAT fraud, and you would need to report this to HMRC when you file your return, then they might suddenly find the authorization they need!

**WindyAnna** · 22 October 2007, 15:19

As long as you state your Vat number on the invoice there is no reason whatsoever for them not to pay it.

Windy

**DS23** · 22 October 2007, 16:25

Originally posted by ruth11 View Post

...So far, I've received 3 weeks worth of payments including VAT since I sent the number, but they've not paid the VAT only invoice yet....

name and shame?

**ruth11** · 22 October 2007, 17:02

Originally posted by DS23 View Post

name and shame?

No. Other than this, they've been very good, so no need to name and shame. Have now been assured that they will pay me this Friday when they pay last week's invoice.

If they fail again, I might consider it.

Agency holding off paying VAT only invoice