VAT payment query

[diesel]

Query on new rule
(background i am FRS VAT LTD Co)

I worked last week 20hrs with each of my 2 clients for weekending 28th Nov. I expect to be paid this 5th Dec for those hours.

Agent A says i should be paid at 15% VAT as invoice is raised after 1st Dec despite services done before this date.
Agent B says i should be paid at 17.% VAT as this service was before 1st Dec.


Account states all invoices raised after 1st Dec even for work/services finished before the 1st Dec should be paid at 15%.

Who is right??

[pmeswani]

Query on new rule
(background i am FRS VAT LTD Co)

I worked last week 20hrs with each of my 2 clients for weekending 28th Nov. I expect to be paid this 5th Dec for those hours.

Agent A says i should be paid at 15% VAT as invoice is raised after 1st Dec despite services done before this date.
Agent B says i should be paid at 17.% VAT as this service was before 1st Dec.


Account states all invoices raised after 1st Dec even for work/services finished before the 1st Dec should be paid at 15%.

Who is right??

Agent A, IMO. Even though you are charging in lieu of the work done, unless you have raised an invoice prior to the change in rate, it would make sense to charge at 15%.

[Beefy198]

Yep, if you raised the invoice on 1st December it's 15%.

Tell agent B to call the VAT Helpline if he still doesn't believe you.

[Kowalski]

I'm in a similar situation,
I raised 4 invoices this week for work completed last month.
3 invoices were authorised by the line manager before the end of November, 1 invoice authorised by the line manager on Monday this week.
When I created the invoices on the agents website, 3 are showing 17.5% and the one authorised this week is showing 15%.

Agent say any invoices raised after the 1st will be at 15% even though 3 of them at at 17.5% so thats incorrect advice. What she probably means is anything authorised after the 1st will be at 15%.

Is there any way of getting the 17.5% rate on the last invoice in November.
I am currently looking at HMRC website to find any further info.

[Beefy198]

If the work was performed before the 18th November then you need to invoice at 17.5%, regardless of the date.

Anything after depends on the date you invoiced. Sunday the 30th is 17.5%, Monday the 1st is 15%. Authorisation shouldn't come into it as far as I know.

Again, if they are giving you grief tell them to call the VAT helpline.

[Kowalski]

I think the agent is right (Shock horror)
I don't want to rock the boat because thinking about it as I invoiced all four of Novembers in December technically they should put the vat down as 15%.
I don't want to loose any more from them.

Vat helpline is constantly busy at the moment.

Edit:- I could only invoice the last one after it was authorised, and I was late getting it authorised.
At the end of the day its only a couple of quid and the VAT man will want a good percentage of that.

[Archangel]

If the work was performed before the 18th November then you need to invoice at 17.5%, regardless of the date.

Anything after depends on the date you invoiced. Sunday the 30th is 17.5%, Monday the 1st is 15%. Authorisation shouldn't come into it as far as I know.

Again, if they are giving you grief tell them to call the VAT helpline.

Its if you completed the work before the 18th, so if you are invoicing for the whole month then the work was not completed until 30th.

[gingerjedi]

Why didn’t people see this coming? I just invoiced for the whole of November at 17.5% on the last working day which was the 28th, I emailed my agent and they said as long as the invoice has a date before the 1st of December then that would be correct.

Some people do make it difficult for themselves!

[Hex]

Why didn’t people see this coming? I just invoiced for the whole of November at 17.5% on the last working day which was the 28th, I emailed my agent and they said as long as the invoice has a date before the 1st of December then that would be correct.

Some people do make it difficult for themselves!

I did the same.

[Beefy198]

Its if you completed the work before the 18th, so if you are invoicing for the whole month then the work was not completed until 30th.

But it wasn't, he is sending separate invoices

Why didn’t people see this coming? I just invoiced for the whole of November at 17.5% on the last working day which was the 28th, I emailed my agent and they said as long as the invoice has a date before the 1st of December then that would be correct.

Some people do make it difficult for themselves!

I did - I just covered myself by finding out so that I was ready if the agency tried to use VAT as an excuse to delay payment of an invoice.