Backdated VAT

[MrMarkyMark]

So reply, "That's fine, I will contact HMRC's VAT department and ask them how to proceed, can I have the name of the correct person in your finance department who would deal with this for them?"

This.

[LondonManc]

VAT reg number was included from very first invoice and on all subsequent invoices. VAT was also included and specified as the VAT element on all invoices. I knew I was right in believing they were talking ball locks. Its not as if they can't claim it back for gods sake.

As mentioned above, my accountant sends invoices on my behalf as I work away and the invoices are weekly. I don't always have access to wi-fi, mail systems etc to be able to do it myself. I submit a timesheet to both my agency and my accountant. An invoice is then raised on my behalf. Works well and no hassle for me (save for this current situation). My accountant is chasing this 'debt' as a liability on their part now. I was unable to send my VAT reg cert to them as obviously it was at home and I was stuck offshore, so could only send them a copy when I got home. I think they are using the fact that they didn't have a copy as their ammo to hold me off. I reckon I have heavy artillery in the form of the Tax Man on my side.

Thanks for all your comments, which only served to concur with my thoughts and strengthen my resolve to get this sorted. They don't like it up 'em you know!

If a correctly-prepared invoice has been submitted by an authorised person (be that the company secretary, director, an appointed accountant, whoever) and tallies up with the approved timesheet days and had VAT on from the start, together with a VAT number quoted then they are liable. Simple as that. Do they ask for a copy of Domino Pizza's VAT certificate when they get the pizzas in for the late night working?

[gary3306]

.......... Do they ask for a copy of Domino Pizza's VAT certificate when they get the pizzas in for the late night working?

This made me LOL properly

[gary3306]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

[MrMarkyMark]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

Edit, sorry misunderstood what the OP was saying, yes they have to see the cert, but they still have to pay the backdated VAT once it is seen.

[jmo21]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

Not really. Can't you just send them a copy of the cert, and they'll pay the VAT?

They may well be wrong, and not admitting to the mistake, but assuming they ARE going to pay it, it's not the end of the world?

[meridian]

Not really. Can't you just send them a copy of the cert, and they'll pay the VAT?

They may well be wrong, and not admitting to the mistake, but assuming they ARE going to pay it, it's not the end of the world?

That would be the easiest path for the OP, but the agency would still be working on incorrect information for all future contractors. Much better to get HMRC involved to pay a site visit to them and put them straight.

[jmo21]

That would be the easiest path for the OP, but the agency would still be working on incorrect information for all future contractors. Much better to get HMRC involved to pay a site visit to them and put them straight.

I was simply suggesting there is not a can of worms being opened for him IF they pay the backdated VAT.

And really, what harm is it actually causing other contractors assuming they DO ask for the cert up front (every agency I've worked through have done this)?

[LondonManc]

I was simply suggesting there is not a can of worms being opened for him IF they pay the backdated VAT.

And really, what harm is it actually causing other contractors assuming they DO ask for the cert up front (every agency I've worked through have done this)?

Agencies have to do it for due dilligence. If they've forked up and failed to do so, it potentially leaves them open to VAT fraud if you're charging it without being authorised to do so. If you've proved that you've been VAT registered since such-a-date then I can't see the problem with the VAT being back-dated.

[jmo21]

Agencies have to do it for due dilligence. If they've forked up and failed to do so, it potentially leaves them open to VAT fraud if you're charging it without being authorised to do so. If you've proved that you've been VAT registered since such-a-date then I can't see the problem with the VAT being back-dated.

Not sure you're why your quoting me on that?