new contract - charge vat if not registered yet?

[mailric]

Looking good for my first contract (fingers crossed) so need to seriously think about invoicing and VAT. If I try to register now, according to most posts it takes months to get the number through.

So in the meantime, do i charge VAT and then just give it to an accountant to sort out once I'm set-up???

Also, can i ask for a payment up front or reduced invoicing terms. as the 28 days mentioned will kill my bank balance as i've got shed loads of cash to spend up-front on travelling expenses etc. Do i just ask Mr Barclaycard to lend me some cash for a month or is it ok to negotiate something shorter (14 days or some % up front at least). maybe its just a first timer worries that he won't get paid after working his balls off for a month!

Much appreciated.

[Gonzo]

Looking good for my first contract (fingers crossed) so need to seriously think about invoicing and VAT. If I try to register now, according to most posts it takes months to get the number through.

So in the meantime, do i charge VAT and then just give it to an accountant to sort out once I'm set-up???

Also, can i ask for a payment up front or reduced invoicing terms. as the 28 days mentioned will kill my bank balance as i've got shed loads of cash to spend up-front on travelling expenses etc. Do i just ask Mr Barclaycard to lend me some cash for a month or is it ok to negotiate something shorter (14 days or some % up front at least). maybe its just a first timer worries that he won't get paid after working his balls off for a month!

Much appreciated.

Noooooo!

Do not charge VAT if not registered. That is probably an offence. Raise your invoices with the words "VAT registration applied for", don't take my word for that though, do a search to find the correct wording.

When the VAT registration certificate is received then raise VAT only invoices, make sure the invoice numbers tie up with the original non VAT invoices.

There were lengthy delays to VAT registration earlier in the year when the number of new company registrations ballooned as a result of the MSC legislation but I would be surprised if the lengthy delays are still being experienced.

You can ask for payment up front but I don't rate your chances very highly. Most likely you will have to find the cash somewhere else to support yourself for the first few months.

[mailric]

cheers for the advice.

phew, you do all the prep and then when it comes close to d-day you realise you've not covered all bases!

anyone know any decent analysts or project managers? lol

[BrowneIssue]

VAT is public money = your money

Looking good for my first contract (fingers crossed) so need to seriously think about invoicing and VAT. If I try to register now, according to most posts it takes months to get the number through.

So in the meantime, do i charge VAT and then just give it to an accountant to sort out once I'm set-up???

Highly recommended. Always charge VAT whether registered or not. This also helps with your accommodation and meal expenses, typically for about 30 months.

Useful links:
http://www.hmprisonservice.gov.uk/pr...,15,2,15,368,0

Also, you can claim for "a wide range of courses to gain key vocational and academic qualifications"

[mailric]

hey, not bad digs. better than the nottingham travel lodge. regime might get me fit too.


ok, point taken. is it too late to point out I actually meant that i would apply first or do i just take it like a man?

[BrowneIssue]

Can I have a sub?

Looking good for my first contract

Huzzah!

Also, can i ask for a payment up front or reduced invoicing terms. as the 28 days mentioned will kill my bank balance as i've got shed loads of cash to spend up-front on travelling expenses etc.

Yes, you can ask. The big agencies do tend to help out first timers and will do ad hoc weekly payments IF YOU ASK. (If you don't ask, nothing happens. Funny that.) Also, they may even do overnight transfers but will probably charge you the £25 or whatever it costs these days.

I did do one contract a few years ago invoicing weekly and them paying weekly for about 9 months despite it being monthly terms in the contract. I just spoke direct to the finance people at the agency rather than my contact. It turned out the finance people couldn't care less!

Remember: don't ask, don't get.

2nd remember: agents like their commission and if something threatens it ("I'm not sure I can afford to turn up next week") they will actually do a little work to protect their interests.

[TheFaQQer]

Looking good for my first contract (fingers crossed) so need to seriously think about invoicing and VAT. If I try to register now, according to most posts it takes months to get the number through.

So in the meantime, do i charge VAT and then just give it to an accountant to sort out once I'm set-up???

No. You invoice without VAT, but put "VAT number pending" on the invoice instead. When you get a VAT number, that will have a date on it, and you can then reinvoice for the VAT that has not been paid on those invoices. The agency / client have to pay this.

Also, can i ask for a payment up front or reduced invoicing terms. as the 28 days mentioned will kill my bank balance as i've got shed loads of cash to spend up-front on travelling expenses etc. Do i just ask Mr Barclaycard to lend me some cash for a month or is it ok to negotiate something shorter (14 days or some % up front at least).

You can ask, but chances are you won't get it. Some agencies will pay on shorter terms for the first month or so, and then change to less often - ask the agency if they can do that. Otherwise, you need to foot the bill and then take it out of the company when the company can pay it back to you.

maybe its just a first timer worries that he won't get paid after working his balls off for a month!

Always worth worrying about - umbrella companies and agencies have gone bust this year, so make sure you are working through somewhere that is going to be reliable.

[ladymuck]

Looking good for my first contract (fingers crossed) so need to seriously think about invoicing and VAT. If I try to register now, according to most posts it takes months to get the number through.

So in the meantime, do i charge VAT and then just give it to an accountant to sort out once I'm set-up???

Also, can i ask for a payment up front or reduced invoicing terms. as the 28 days mentioned will kill my bank balance as i've got shed loads of cash to spend up-front on travelling expenses etc. Do i just ask Mr Barclaycard to lend me some cash for a month or is it ok to negotiate something shorter (14 days or some % up front at least). maybe its just a first timer worries that he won't get paid after working his balls off for a month!

Much appreciated.

When you get your VAT registration through, you can call them and ask for registration to be backdated if it doesn't suit your accounting periods. I was lucky and registered last year before the current mess-up. My first VAT period was due to start mid-month but a quick phone call got that pushed back to the start of the month and made everything a lot tidier. Dunno if they have the 'capacity' to deal with that kind of request now...

[SteveV]

VAT registration is quick at the moment, I just got mine back, took less than 2 weeks.

[mailric]

cheers all. good advice.