Reply to: VAT and IR35

[dty]

Charge 20% VAT , Pay HMRC 14.5% SIMPLES

Charge 20% VAT, pay HMRC 14.5% of the GROSS invoice amount. Or is it 13.5%? Oh, it's not QUITE so simple if it's the first time you've looked at it, is it? We all started out from somewhere with no knowledge, remember.

[CloudWalker]

Charge 20% VAT , Pay HMRC 14.5% SIMPLES

[vadhert]

If you stick with your current accountant then you will end up in serious trouble.

Seriously, Use one of the recommended ones, not some cowboy who has not got a clue in what he or she is doing.

[Ticktock]

Thanks Guys, I'm chasing but i's not easy. He's still insisting on his model, how long the VAT registration takes?

Faraz

Yes fire him, but above that, he has no right to insist on anything. He can advise, but he works for you. He does what you tell him to, unless you are telling him to act illegally. Put him in his place, and then fire him.

[DaveB]

Thanks Guys, I'm chasing but i's not easy. He's still insisting on his model, how long the VAT registration takes?

Faraz

VAT registration usually takes about 6 weeks. You can do it yourself, it's easy. Go here:

https://www.gov.uk/vat-registration/how-to-register

Get a new accountant. Seriously. This guy is incompetant and it's you that will end up paying for it.

There is a list on the website here: Directory of Contractor Accountants - accountancy services providers for IT contractors :: Contractor UK

SJD, Nixon Williams, Accountax, InTouch all post on here to answer questions. Any one of them will give you a decent service and know what they are on about. All of them will happily talk to you about what you need and what they can do and what you need to worry about before you sign up with any of them. Ring a couple of them and have a chat, then go back to your current guy and challenge what he is saying. Ask him to explain EXACTLY why he is saying it.

[TheFaQQer]

Thanks Guys, I'm chasing but i's not easy. He's still insisting on his model, how long the VAT registration takes?

Faraz

Fire him and hire someone competent, before he costs you a lot of money.

[LisaContractorUmbrella]

Thanks Guys, I'm chasing but i's not easy. He's still insisting on his model, how long the VAT registration takes?

Faraz

https://www.gov.uk/vat-registration/how-to-register +1 to the other comments on here - your accountant doesn't know what he's talking about - find a new one

[farazfastian]

Thanks Guys, I'm chasing but i's not easy. He's still insisting on his model, how long the VAT registration takes?

Faraz

[Andrew@Wisteria]

Splitting your income across 2 companies to avoid VAT registration is poor advice at best. VAT can be backdated but it doesn't sound appropriate here for invoices already raised.

[expat]

Don't panic!

Also, don't panic about the VAT. You do not actually need to register for VAT until your turnover exceeds the threshold, which it probably hasn't yet. Then (or at any convenient time before then) you can register, and when the registration is effective you then start invoicing including VAT.

There is no contradiction in legitimately changing from not registered to registered, and the change is not retroactive, i.e. there is no need to go back and change previous invoices.

Edit: just as DaveB described it (better) above.

[SueEllen]

Thank you guys for valuable advises, apologies yes i meant accountant

I've already got paid on couple of invoices without VAT, is there a way to raise VAT for those invoices or it's too late?
I'll raise my next invoice with VAT and ask him to register for VAT asap.

Thanks,
F.

You have been advised to get a new accountant - I strongly suggest you follow that advice.

Quite a few posts on this forum are from contractors left in the lurch by an accountant who is a cowboy like yours.

Remember regardless what your accountant does or doesn't do for you, in the eyes of the law you are at fault.

[Alan @ BroomeAffinity]

and ask him to register for VAT asap.

Thanks,
F.

Don't ask him to do anything. He clearly doesn't know what he's doing.

[DaveB]

Thank you guys for valuable advises, apologies yes i meant accountant

I've already got paid on couple of invoices without VAT, is there a way to raise VAT for those invoices or it's too late?
I'll raise my next invoice with VAT and ask him to register for VAT asap.

Thanks,
F.

You cannot invoice for VAT until you are registered and have a VAT number. In the mean time keep invoicing without VAT but inform the agency that you are waiting for VAT registration and that you will be raising a VAT only invoice in due course. This is normal, they should have no issue with it.

Once you get your VAT number and registration date you need to raise an invoice for the VAT due on any invoices raised after your registration date where VAT was not included. You can then start adding VAT to any new invoices raised in future.

[farazfastian]

Thank you guys for valuable advises, apologies yes i meant accountant

I've already got paid on couple of invoices without VAT, is there a way to raise VAT for those invoices or it's too late?
I'll raise my next invoice with VAT and ask him to register for VAT asap.

Thanks,
F.

[Scruff]

Does your accountant wear a Stetson?

Narp - a Fez...