Backdating VAT

[Peter Loew]

Hi Guys,

Despite me explicitly warning Hays that I would be invoicing VAT from December, they processed my timesheet for November as a VAT invoice. Now they won't pay me until I resend a VAT invoice for November.

My official VAT registration date was from December 1st 2007, I have 3 questions:

1) Can I charge VAT on invoices before my VAT registration date? (i.e. Dec. 1st)
2) If so, how far back can I charge for VAT?
3) Does this affect the FRS in any way?

Thanks,

P

[TheFaQQer]

You can't charge VAT from before the VAT registration date - explain this to them and refund the VAT element to them.

[Peter Loew]

You can't charge VAT from before the VAT registration date - explain this to them and refund the VAT element to them.

Thanks, though there is nothing to refund as it is still in their system as waiting for a VAT invoice, hence their need for me to send them a VAT invoice for November.

Could I ask them to cancel the current November invoice and issue an invoice charging for Nov & Dec in a lump sum and stick the VAT on that?

P

[TheFaQQer]

You can try - makes no odds to you, though, since you just pass the money over to HMRC.

I'd be surprised if they go for it - offer them the choice of doing that or no VAT for November and see what they want to do.

[Peter Loew]

Right, just spoke to the Vatman at HMRC, and she said that I can't invoice for VAT from my effective data onwards, prior to my effective date. So since my effective date is Dec 1st for example, I can't now (on the 14th Dec) issue a VAT invoice for November just gone.

I have had some people tell me they issued VAT only invoices for historical invoices, but according to this woman you can't do that.

Well, in this case I have given the agency the option of either accepting the non-VAT invoice they already have or canceling it and charging them with a brand new invoice covering Nov + Dec post VAT effective date.

Anyway wanna hedge any bets?

P

PS I had to give my company details to the HMRC when I called up, do you think I can sleep easy or shall I pack my bags and leave the country?

[Sockpuppet]

Just invoice for November Vat Free 0% and December as 17.5% on the same invoice.

Sorted.

[DaveB]

I have had some people tell me they issued VAT only invoices for historical invoices, but according to this woman you can't do that.

If you've been issuing invoices after applying for VAT registration but before your VAT registration has been approved then you invoice without VAT. You should note on the invoice that your VAT registration is pending and that you will issue a seperate invoice for the VAT once it is completed.

When you get your registration through you then issue VAT invoices for those non-VAT invoices issued after the registration date.

This is because the VAT man sets your date of registration at the date they recieved your application, not the date they issue your registration number. This can differ by several months.

You can't invoice for VAT on invoices issued before your registration date. The agency are wrong here and should be paying your invoice without VAT, assuming you did invoice them prior to your registration date.

[Bluebird]

[quote=Peter Loew;386832]

I have had some people tell me they issued VAT only invoices for historical invoices, but according to this woman you can't do that.[quote/]

Thats because they hadn't had their VAT registration yet because HMRC took so long to sort it out.

In effect their VAT reg date was, say 1/03/07, but didn't get notification until say 1/10/07.

They could not "invoice" VAT until AFTER 1/10/07, but then they could backdate the VAT from 1/3/07 - PROVIDING their previous invoices stated that Vat Registration was pending.