Backdating VAT - payment date or actual work done

[TheFaQQer]

I have used the in 'Lieu statement for charge' and so far no one has said anything for the last 2 invoices,

or

Delete as appropriate.

[northernladuk]

I have used the in 'Lieu statement for charge' and so far no one has said anything for the last 2 invoices,

I have absolutely no idea what that means.

[m17nny]

You are getting paid 35-45 days LATE? Seriously ??

I have used the in 'Lieu statement for charge' and so far no one has said anything for the last 2 invoices,

[TheFaQQer]

You are getting paid 35-45 days LATE? Seriously ??

I suspect that the "r" is missing, and it's 35-45 days later.

[northernladuk]

I am currently a contractor, supplying my services to a very large organisation, however their payment system means I get paid almost 35 to 45 days late. While their payments are delayed & I past my threshold for registration, for VAT.

How will this effect me charging for VAT, I have missed at least 3 weeks worth of invoices that states ' Charge in Lieu for VAT invoice, a VAT invoice will be supplied once registration is complete'
I have two questions:
1) Do I just send a invoice request for VAT for the 3 weeks i have not stated this ?
2) Once the registration certificate/number has been given to me, will HMRC request all invoices for the last 12 months VAT be paid to them ?

Thank you newbie

You are getting paid 35-45 days LATE? Seriously ??

[TheCyclingProgrammer]

Will your VAT registration date pre-date those invoices or not? If it does I suggest you contact your client immediately and explain the situation and see if they will accept reissued invoices or a VAT only invoice.

[m17nny]

Late payment by 'clients' during your VAT compulsory period

I am currently a contractor, supplying my services to a very large organisation, however their payment system means I get paid almost 35 to 45 days late. While their payments are delayed & I past my threshold for registration, for VAT.

How will this effect me charging for VAT, I have missed at least 3 weeks worth of invoices that states ' Charge in Lieu for VAT invoice, a VAT invoice will be supplied once registration is complete'
I have two questions:
1) Do I just send a invoice request for VAT for the 3 weeks i have not stated this ?
2) Once the registration certificate/number has been given to me, will HMRC request all invoices for the last 12 months VAT be paid to them ?

Thank you newbie

[Hallam Jones Accounting]

Backdating VAT

The finance department need a few lesson in VAT. If your effective date of registration is 10/1/15 then they must back date VAT from then onwards. I do not understand why they are saying they will only backdate the VAT after 10/1/15. If you haven't already, send them a copy of your VAT certificate and point out the effective VAT registration date. Ask them for a written explanation of why they refuse to pay VAT from the effective date.

Regards
Abbas Shah

Hallam Jones Accountancy

[TheCyclingProgrammer]

To be fair you could be right but am not 100% convinced the story is clear here.

The thread below indicates he must state in the invoices that VAT Reg is applied for or some indication it's on it's way.

http://forums.contractoruk.com/accou...t-invoice.html

If that's the case then I don't know why people don't insist on having clauses in their contract that state that clients will be liable to any VAT in the event of the supplier becoming VAT registered. Seems like this would cover this situation regardless of what the original invoice said.

That said, given it costs the agency nothing as they presumably reclaim the VAT I can think of no good reason for the agency not to pay a VAT only invoice or reissue their original ones.

[northernladuk]

To be fair to OP, they do seem to know what is correct - it's the agent that doesn't have a clue.

To be fair you could be right but am not 100% convinced the story is clear here.

The thread below indicates he must state in the invoices that VAT Reg is applied for or some indication it's on it's way.

http://forums.contractoruk.com/accou...t-invoice.html

[TheCyclingProgrammer]

This is really why you pay for an accountant. Get him to explain the whole thing to you so you know for next time... You may actually learn something now you can avoid tripping over in the future...

You do have an accountant don't you????

To be fair to OP, they do seem to know what is correct - it's the agent that doesn't have a clue.

[TheCyclingProgrammer]

All invoices after and including 10/1 should have VAT. Tell your agent to speak to their finance department for a lesson on how VAT works. Your time sheets are not relevant, the invoice date is.

If you are on self billing and they refuse to reissue a valid VAT invoice then tell them you will be invoicing them for the VAT separately and if it's not paid you will pursue the debt like any other.

[northernladuk]

This is really why you pay for an accountant. Get him to explain the whole thing to you so you know for next time... You may actually learn something now you can avoid tripping over in the future...

You do have an accountant don't you????

[iladarsda]

Hello,

I am an IT contractor, working for an agency with 21 days payment delay, where payment date is the same as invoice date they are raising on my behalf.

Just registered for the VAT with a start/effective date of 10/01/2015.

I've asked my agency to back date/back pay the VAT on all of the invoices dated 10/01/2015 and after.

What they said, they will only pay VAT for timesheets after 10/01/2015 - which means I will have some invoices dated 10/01/2015 without any VAT paid on it.

Are they correct? How do I explain this to the HMRC?

Any suggestions much appreciated.