First invoice, not VAT registered yet

[BiggusNickus]

Hi folks,

on my first contract and about to generate my first invoice

I will go over the VAT threshold during my first year, and so will be registering for VAT but right now I am not registered for VAT (due to a massive delay in getting my business bank account set up - another story!)

So my simple question is, do I charge VAT on my first invoice, or do I only start charging VAT once I am VAT registered. (The business is a one-man consulting operation).

Thanks in advance!

BN

[SueEllen]

This has come up before so if you use the search facility you will find out the different thing people put on their invoice. Anyway the general rule of thumb is:
1. Put in an invoice without VAT
2. When you get your VAT certificate put in another invoice for VAT

[Clippy]

You only need to worry about invoices once you are registered.

When you get your VAT certificate, it will be dated - that is the date from which you need to charge VAT.

Therefore, between the date on the VAT certificate and the date you actually receive it in the post, there may be one or two invoices (depending on whether you invoice weekly or monthly) that you need to apply VAT to retrospectively.

In this case, you just need to raise a VAT Only invoice and submit that for payment.

In the meantime, until you receive your VAT number, I would amend your existing invoice template to say something along the lines of VAT registration number pending.

Also, it would be prudent to email whoever you submit your invoices to to give them a heads up that you are awaiting your VAT number and, hence, to potentially expect a VAT only invoice once your registration comes through.

[Wanderer]

I will go over the VAT threshold during my first year, and so will be registering for VAT but right now I am not registered for VAT

Don't mess about, register now and get it back dated to your company incorporation date. Also consider getting on the VAT FRS and backdating that too because you can potentially make money out of the FRS. Or perhaps claim back the VAT on your startup costs and then join the FRS.

So my simple question is, do I charge VAT on my first invoice, or do I only start charging VAT once I am VAT registered. (The business is a one-man consulting operation).

Noooo! Don't charge VAT unless you are properly registered with a certificate and number or HMRC will bite you on the arse. As others have said, you can backdate the registration and then issue an invoice for the VAT owed once you have the registration done. Easy enough done if you have a single client but could be a pain if you work for a dozen or more.

[BiggusNickus]

Thanks folks, I appreciate your advice

[prozak]

Have you applied for VAT yet?

You could save yourself some hassle and wait to raise your invoice until your registration comes through.

[JamJarST]

Have you applied for VAT yet?

You could save yourself some hassle and wait to raise your invoice until your registration comes through.

What hassle? You raise invoices without VAT until you get your certificate, then when you get it you rasie one more invoice for the VAT, doesn't get much simpler than that.

[SueEllen]

What hassle? You raise invoices without VAT until you get your certificate, then when you get it you rasie one more invoice for the VAT, doesn't get much simpler than that.

It's hassle if the agency doesn't play ball.

But that's due to the admin/invoicing person being an idiot.