Checking account advice

[Newbie1]

Hi,

I am new to contracting but have >20 years perm experience.

I am contracting in Ireland, not close to 183 days, outside of IR35.

I am using a Ltd company and the company I invoice in based and registered in Ireland.

My accountant says I should be invoicing VAT to the Irish company then they claim it back. He said I invoice 20% (VAT is 20% in UK, 23 % in Ireland).

I'm far from an expert in these matters but this does not sound right to me. I would invoice VAT to a company based and registered in the UK only. Currently I have not invoiced them VAT.

Thoughts based on what I have written? If I am right then it looks like I need a new accountant but wanted to double check first.

Thanks,

[Newbie1]

That should say accountant advice not account.

This firm deal with contractors, hence why I went with them

[malvolio]

That should say accountant advice not account.

This firm deal with contractors, hence why I went with them

So why aren't you listening to them? There are treaties between countries (including Eire and UK) about levelling off VAT across borders: another wonderful EU legislative burden. I think what you are being told is right, if counter-intuitive, but I'm no expert. There is lot of information on the .GO.UK website about it, so try googling "VAT between UK and Eire"

[eek]

So why aren't you listening to them? There are treaties between countries (including Eire and UK) about levelling off VAT across borders: another wonderful EU legislative burden. I think what you are being told is right, if counter-intuitive, but I'm no expert. There is lot of information on the .GO.UK website about it, so try googling "VAT between UK and Eire"

My honest advice would be to post on a forum where accountants do visit and see what their advice is (which strangely enough the OP has done)..

The reason I say that is that if I look at VAT between the UK and Ireland (as unlike others here I research things before posting when I know the question is awkward) you may be falling between multiple stools depending on exactly what you are doing, how the contract has been phased and what evidence the Irish company can provide. Hence a 2nd /3rd opinion from others who are actually qualified to answer the question would be a very sensible idea.

And its the sort of question that really requires an accountant who has been through this before to answer..

[Newbie1]

To clarify, they are vat registered in Ireland. My company is vat registered in the uk.

[Newbie1]

My honest advice would be to post on a forum where accountants do visit and see what their advice is (which strangely enough the OP has done)..

The reason I say that is that if I look at VAT between the UK and Ireland (as unlike others here I research things to before posting) you may be falling between 2 stools depending on exactly what you are doing, how the contract has been phased and what evidence the Irish company can provide. Hence a 2nd /3rd opinion from others who are actually qualified to answer the question would be a very sensible idea.

Thanks. That sums it up perfectly.

The company i contract for is Irish based in Ireland. IT contracting and I'm nowhere near public sector.

I don't get paid holidays, benefits etc as it's a service contract for my skills.

[eek]

Thanks. That sums it up perfectly.

The company i contract for is Irish based in Ireland. IT contracting and I'm nowhere near public sector.

I don't get paid holidays, benefits etc as it's a service contract for my skills.

My advice would be to wait until Monday / Tuesday when our resident accountants appear and see what they suggest...

I think the other question is what exactly are you supplying to them and where. Are you in Dublin working in their offices or working remotely? Are you sending code to them or just providing advice?

[malvolio]

My honest advice would be to post on a forum where accountants do visit and see what their advice is (which strangely enough the OP has done)..

The reason I say that is that if I look at VAT between the UK and Ireland (as unlike others here I research things before posting when I know the question is awkward) you may be falling between multiple stools depending on exactly what you are doing, how the contract has been phased and what evidence the Irish company can provide. Hence a 2nd /3rd opinion from others who are actually qualified to answer the question would be a very sensible idea.

And its the sort of question that really requires an accountant who has been through this before to answer..

Why do we need to do the research? We're not asking the question. My answer is far from comprehensive, other than pointing out that IME the accountant's advice is right but to do some background reading to understand why. Having been through the loop of bidding for UK-based work in Eire, I'm not exactly unacquainted with it all, but I'm not a qualified authority like his accountant is and legislation does shift around.

So if I can summarise your more lengthy reply - WHS.

[TheCyclingProgrammer]

A supply of consulting services from a U.K. company to a company outside the U.K. is normally outside the scope of UK VAT and as the client is in the EU is subject to the reverse charge at their end.

Your invoice should not have any VAT and should state that the supply is subject to the reverse charge.

You may also need to complete an EC sales list.

This only applies to B2B supplies and you need to keep evidence that this was a B2B supply (even if this is obvious). As the client is VAT registered in Ireland you can simply keep a record of this and include it on your invoices (if you want to be picky you could also validate their VAT number online).

There are exceptions for certain types of supply but normal consultancy services fall under the general rule. I'm surprised your accountant has got this wrong but they may not have much experience with VAT matters. Or perhaps there is some additional details about your supply that you haven't mentioned on here.

[eek]

Why do we need to do the research? We're not asking the question. My answer is far from comprehensive, other than pointing out that IME the accountant's advice is right but to do some background reading to understand why. Having been through the loop of bidding for UK-based work in Eire, I'm not exactly unacquainted with it all, but I'm not a qualified authority like his accountant is and legislation does shift around.

So if I can summarise your more lengthy reply - WHS.

Why research things? Because it stops you posting things that are wrong (as you may well have done above)..

But at least you've finally admitted that you happily post unchecked tulip as if it was fact...