Charging VAT without a VAT number

[zudecke]

Hi guys,

I recently started contracting and whilst my VAT number is pending, I do intend to invoice the client VAT. I did tell them this before signing up the business.

However, received my first invoice to find VAT has been excluded.

Am I within my right to request reissuing of this invoice to account for VAT or is it something that will need to be back-invoiced?

Thanks in advance,

Nick

[VectraMan]

You need to send a second invoice with just the VAT on it when you have a VAT number (assuming your VAT start date is before the original invoice).

[SteelyDan]

Hi guys,

I recently started contracting and whilst my VAT number is pending, I do intend to invoice the client VAT. I did tell them this before signing up the business.

However, received my first invoice to find VAT has been excluded.

Am I within my right to request reissuing of this invoice to account for VAT or is it something that will need to be back-invoiced?

Thanks in advance,

Nick

Not sure what you mean by 'However, received my first invoice to find VAT has been excluded. '; invoices are what you issue, not what you receive.

I had this situation when I was direct with a client. Having discussed with the client, & once VAT number came thru I raised a separate invoice purely for the VAT element, with a note of explanation. No problems.

[captainham]

There's a thread somewhere on this topic, but i'll repeat what i said there below.

you can just invoice the full amount (including VAT) but don't show it as VAT, just show it as one total figure. add a note at the bottom to say you'll reissue the invoice once VAT registered.

Then reissue invoice correctly once you're registered.

there is a chance the client might reject it (maybe they don't believe you'll become VAT registered), so just make sure they know what you are doing and why.

EDIT: found it. http://forums.contractoruk.com/accou...ml#post1616333

[zudecke]

Thanks for the replies guys.

I've registered for self billing, which means an intermediary (recruiter) is raising the invoices on my behalf...

[captainham]

In that case, you need to get straight onto the agency to confirm how they intend to handle this situation, so you can be satisfied it will all end well.

Worst case (if you just ignore it and don't get on top of it now) is you need to pay the VAT out of your own pocket, which is obviously less than desirable...

[tractor]

...

Not sure what you mean by 'However, received my first invoice to find VAT has been excluded. '; invoices are what you issue, not what you receive.

I had this situation when I was direct with a client. Having discussed with the client, & once VAT number came thru I raised a separate invoice purely for the VAT element, with a note of explanation. No problems.

Unless it's a self billing arrangement :P

[tractor]

Hi guys,

I recently started contracting and whilst my VAT number is pending, I do intend to invoice the client VAT. I did tell them this before signing up the business.

However, received my first invoice to find VAT has been excluded.

Am I within my right to request reissuing of this invoice to account for VAT or is it something that will need to be back-invoiced?

Thanks in advance,

Nick

What you did was exactly what not to do according the the VAT regs. You need to visit HMRC web site to find the rules.

As others have said, once you have your VAT number, you need to issue a VAT ONLY invoice clearly marked as such.

The main thing to watch out for is any payment in process as you send in your VAT certificate. Issue the VAT only invoice once all outstanding NON VATTED invoices have been paid. This happened to me once and I didn't catch the offending invoice until year end. Wasn't a great deal of money but it would have been better in my bank than theirs.

[zudecke]

What you did was exactly what not to do according the the VAT regs. You need to visit HMRC web site to find the rules.

As others have said, once you have your VAT number, you need to issue a VAT ONLY invoice clearly marked as such.

The main thing to watch out for is any payment in process as you send in your VAT certificate. Issue the VAT only invoice once all outstanding NON VATTED invoices have been paid. This happened to me once and I didn't catch the offending invoice until year end. Wasn't a great deal of money but it would have been better in my bank than theirs.

What did I do wrong?!

I'll get onto the agency now!

Cheers all,

Z

[craig1]

Here's the process for what to do while you're waiting for your VAT number.