Invoicing end of month - no bus account or VAT yet?

[psychocandy]

Only started this week and its all been a bit of a rush....

As such, it doesnt look like the business account will be open or the VAT registration done.

Am I right in saying that I can :-

1. Get the agency to pay into my personal account first time off. (I guess then I can just transfer when it is open).

2. Raise an initial invoice without VAT, then raise a VAT only one later when VAT registration is done. Do I need to put anything on initial invoice?

[eek]

1. Get the agency to pay into my personal account first time off. (I guess then I can just transfer when it is open).

No you need a business account as the money is not yours until you pay it to yourself. Try your personal bank as they will usually set an account up quickly.

2. Raise an initial invoice without VAT, then raise a VAT only one later when VAT registration is done. Do I need to put anything on initial invoice?

Thats right. You don't need to write anything on the invoice but ensure the agency know what is happening.

[SueEllen]

Only started this week and its all been a bit of a rush....

As such, it doesnt look like the business account will be open or the VAT registration done.

Am I right in saying that I can :-

1. Get the agency to pay into my personal account first time off. (I guess then I can just transfer when it is open).

No you definitely cannot do that for a number of reasons.

First being the agency can refuse as it's not in the business name.

Secondly if they don't they are likely to make all your payments into your personal account.

Thirdly even if they don't do 2, if your business is ever investigated by HMRC for tax purposes you have now given HMRC the right to go through all your personal accounts.

Get into the mindset now that the business and you are separate people.

If you have a good credit record then find a bank who can open you an account the same day i.e. give your account number and also continue opening the other bank account. (HSBC use to, so go in and ask them.) Give the agency the account you have opened quickly and for this contract just use that account. When you have finished this contract use your preferred account and closed down the other one.

I know a few contractors who had to do that. However most of them ended up staying with the account they opened quickly.

2. Raise an initial invoice without VAT, then raise a VAT only one later when VAT registration is done. Do I need to put anything on initial invoice?

Yes you can do that. You don't need to put anything on the initial invoice unless you want to i.e. awaiting VAT number. The VAT invoice needs to be clear listing the payments made and what's owed.

[LisaContractorUmbrella]

You could also use an umbrella company for a couple of months until you have got everything sorted out; at least then your cash flow wouldn't be interrupted

[psychocandy]

Just though though. Complicated a little by the fact that I'm going to paid in Euros.

I was planning on opening a sterling and euro account with Cater Allen, so that I dont lose too much when I transfer between. (Any idea how long they take?)

Otherwise, I guess if I open a standard business account somewhere else I'm going to get charged fees for foreign payment?

[northernladuk]

Just though though. Complicated a little by the fact that I'm going to paid in Euros.

I was planning on opening a sterling and euro account with Cater Allen, so that I dont lose too much when I transfer between. (Any idea how long they take?)

Otherwise, I guess if I open a standard business account somewhere else I'm going to get charged fees for foreign payment?

Sorry but from what I can see is you are starting work and are not in a position to get paid. Surely your focus should now be spent speaking to the banks and asking them these questions right now, not asking for general advice on a forum. We can't carry you the whole way. You have to get out there and do some digging with the banks. You want to know how long Cater Allen will take to open and options about Euro/Sterling... then ring them and ask... now!

[Clare@InTouch]

Just though though. Complicated a little by the fact that I'm going to paid in Euros.

I was planning on opening a sterling and euro account with Cater Allen, so that I dont lose too much when I transfer between. (Any idea how long they take?)

Otherwise, I guess if I open a standard business account somewhere else I'm going to get charged fees for foreign payment?

Around 10 working days is standard, keeping in mind of course that there's a bank holiday next week that may slow things down.

[LisaContractorUmbrella]

IT depends on the brolly and the agency to be fair, if they work together there's no reason why all of that can't be sorted out within a few days

[psychocandy]

Nah. Thanks for the offer but I dont think I'll do Brolly.

Bank Account application is underway now so fingers crossed for that one.

VAT registration done last week - waiting. Sorted agency out with regards to that. They did try to tell me they couldn't pay me without a VAT reg on the invoice.

Now when I kicked up a fuss and told them I wasnt going to wait 6-8 weeks to get paid, they agreed to pay VAT exclusive first and then pay VAT portion later. I'm assuming I shouldnt include VAT on first invoice (since I dont have reg no) but instead do a separate vat only invoice referring back to first one when I do?

[SueEllen]

Now when I kicked up a fuss and told them I wasnt going to wait 6-8 weeks to get paid, they agreed to pay VAT exclusive first and then pay VAT portion later. I'm assuming I shouldnt include VAT on first invoice (since I dont have reg no) but instead do a separate vat only invoice referring back to first one when I do?

Yes.

I stated that previously.

All clients whether they are agencies or direct can pay you without VAT.

However if you are VAT registered you have to chase them up to pay the extra VAT otherwise you will be the one paying HMRC from your own money.