Vat

[XTC]

Ardesco makes a good point there. If you aren't registered for VAT you can't have been adding VAT to your invoices. Therefore, do you owe the vat man any money?

Ok well as I said I'm pretty ignorant in regards to VAT, but I wasn't claiming VAT. My accountant (SJD) told me last year when I went back to Oz in august (with the intention of staying) not to bother registering for VAT and that they would probably forget about it because I was back in Oz. When I came back she said well you need to register for VAT now. So I tried, bureaucratic nightmare ensued, told SJD that I'm going home and they said phone VAT man and "make a deal". I should have been a bit more switched on as to what VAT is and how to operate my LTD company etc but I haven't..... any advice is appreciated guys!

[andyg]

Malvolio

Good point but surely if he had been filing his regular year-end accounts and paying his corp tax HMRC would have been on to him by now? I would have though that if he applied to Companies House to have his ltd struck off (£10) then as HMRC don't know about him he'd be OK?

But seek expert advice!!

[malvolio]

My point is would you let something that important drift for 8 months? Knowing it was going to screw you royally in a short while? On the few occasions I've had to call the VAT people, they have been unfailingly helpful and responsive (unlike the IR guys...).

As for back-invoicing the missing VAT, as long as he's been putting "VAT Registration applied for" on his invoices, that is exactly what he should do, quoting the relevant original invoice numbers. It might still be possible if he hasn't, but the chances of a delayed or non payment are rather higher in that case. The VAT is owed regardless.

Depressing, isn't it...

[mjshrimpton]

I don't suppose he can get his VAT cert and then invoice all his old clients for the VAT portion of his old invoices?

I did this, but weeks later once the registration came through, not months/years!!!! I wonder how happy the agencies/clients in question are going to be at receiving an invoice for all that VAT in one go.

Mine did come through in about six weeks though, so I was lucky.

Do a deal under the offshore disclosure scheme, it is there for any tax affairs, not just offshore bank accounts. Register today at least, as you have until the 22nd June to register, and then November to pay.

https://disclosures.hmrc.gov.uk/oaics/

Then get SJD to tot it all up, invoice the clients, add the apporpriate interest, and a 10% fixed penalty, which is very low, and get off back to the land of melanomas and Jamie Oliver and Only Fools and Horses 24/7 on the TV.

Also anyone without receipts for their expenses while working through an MSC should use it as well or else meet bubba in the showers

[XTC]

My accountant has been pretty good, but her attitude towards payment/registering of VAT has been fairly casual. There certainly hasn't been any talk of £30K+ bills and jail!

[mjshrimpton]

My accountant has been pretty good, but her attitude towards payment/registering of VAT has been fairly casual. There certainly hasn't been any talk of £30K+ bills and jail!

Could that be because it is not her facing it, and as your accountant she is not negligent?

Use the Offshore Disclosure process and at least minimise the penalties you will face.

[rootsnall]

Could that be because it is not her facing it, and as your accountant she is not negligent?

Use the Offshore Disclosure process and at least minimise the penalties you will face.

XTC, your problem is nothing to do with the 'Offshore Disclosure process'.

I suggest you get onto your accountant asap and work out how much VAT should of been added to your invoices and ask how they are going to help solve the problem.

[mjshrimpton]

XTC, your problem is nothing to do with the 'Offshore Disclosure process'.

I suggest you get onto your accountant asap and work out how much VAT should of been added to your invoices and ask how they are going to help solve the problem.

I disagree. The penalties on this will be huge, and the accountants help will be to figure out what VAT should have been charged, nothing more, nothing less. It is not their fault, and they have no liability.

Register for the disclosure scheme to minimise the penalties that will undoubtedly be due when you come to present this all to HMRC.

[youngguy]

My point is would you let something that important drift for 8 months? Knowing it was going to screw you royally in a short while? On the few occasions I've had to call the VAT people, they have been unfailingly helpful and responsive (unlike the IR guys...).

As for back-invoicing the missing VAT, as long as he's been putting "VAT Registration applied for" on his invoices, that is exactly what he should do, quoting the relevant original invoice numbers. It might still be possible if he hasn't, but the chances of a delayed or non payment are rather higher in that case. The VAT is owed regardless.

Depressing, isn't it...

I applied for FRS in March and am still waiting. My invoices say "VAT: Penfding" and I am about to leave this contract and start another. I've emailed my accountant asking if there is anything I should do, what are your thoughts Mav? Do I just invoice the 'old agency' in months to come when I get VAT registered?

[oraclesmith]

Depends if you're voluntary or over the threshold. If the latter, you should have been charging VAT already I believe. If not, then I don't think you'll be able to collect any VAT before your reg. date.