Reply to: 20% SALES TAX received but NOT requested

[ASB]

Thanks for sharing this. My VAT is due 1/1 next year and i just had a flying thought that i would pay on the 3rd or 5th.oooops! Guess i better pay pronto before i get same letter!

Assuming you pay debit card over the phone you should be ok until the 4th. 3rd if direct transfer. 10th is you set up a direct debit in time (then cancel it if so incline). There is a calculator for various payment methods on gov.uk.

[TNA57]

Really not worth messing with the VAT man, i missed my payment deadline by one day last quarter (slipped my mind), only a day late and the first time this has happened in 5 years of contracting....

... a few days letter a stern letter from the VAT mob lands on my doorstep telling me I've been a naughty boy and if It happens again within the next 12 months I'll be hit with a 2% penalty (which will go up on each transgression), I made sure to pay this quarter as soon as my accountant calculated the amount due!

Thanks for sharing this. My VAT is due 1/1 next year and i just had a flying thought that i would pay on the 3rd or 5th.oooops! Guess i better pay pronto before i get same letter!

[zimmerman90]

Case closed.

Hi, ok thanks for the advice, will contact the agency and advise them. CASE CLOSED.

[SlipTheJab]

2% of that bill or 2% of the VAT within that tax period?

This is one reason I moved accountants. They sent a tax invoice to my wife's email address. Not mine. Wifey checks her email if and when she does an online shop... Could have been a very expensive mistake for me.

It would be 2% on top of whats owed that quarter. Not my accountants fault, who is very good. My bad for not doing it on time.

[northernladuk]

My goodness, you don't know your VAT liability or when it's due? I do all my own accounts to trial balance. I only have an accountant to do an annual sanity check, calculate CT and do the HMRC/CoHo returns. I would never hand over so much control to an accountant (no offense intended to accountants, btw)

Mr Upton says none taken.

[ladymuck]

2% of that bill or 2% of the VAT within that tax period?

This is one reason I moved accountants. They sent a tax invoice to my wife's email address. Not mine. Wifey checks her email if and when she does an online shop... Could have been a very expensive mistake for me.

My goodness, you don't know your VAT liability or when it's due? I do all my own accounts to trial balance. I only have an accountant to do an annual sanity check, calculate CT and do the HMRC/CoHo returns. I would never hand over so much control to an accountant (no offense intended to accountants, btw)

[Lost It]

Really not worth messing with the VAT man, i missed my payment deadline by one day last quarter (slipped my mind), only a day late and the first time this has happened in 5 years of contracting....

... a few days letter a stern letter from the VAT mob lands on my doorstep telling me I've been a naughty boy and if It happens again within the next 12 months I'll be hit with a 2% penalty (which will go up on each transgression), I made sure to pay this quarter as soon as my accountant calculated the amount due!

2% of that bill or 2% of the VAT within that tax period?

This is one reason I moved accountants. They sent a tax invoice to my wife's email address. Not mine. Wifey checks her email if and when she does an online shop... Could have been a very expensive mistake for me.

[SlipTheJab]

direct debit is your friend!

Yeah I don't trust them enough to give them access

[pr1]

Really not worth messing with the VAT man, i missed my payment deadline by one day last quarter (slipped my mind), only a day late and the first time this has happened in 5 years of contracting....

... a few days letter a stern letter from the VAT mob lands on my doorstep telling me I've been a naughty boy and if It happens again within the next 12 months I'll be hit with a 2% penalty (which will go up on each transgression), I made sure to pay this quarter as soon as my accountant calculated the amount due!

direct debit is your friend!

[SlipTheJab]

Really not worth messing with the VAT man, i missed my payment deadline by one day last quarter (slipped my mind), only a day late and the first time this has happened in 5 years of contracting....

... a few days letter a stern letter from the VAT mob lands on my doorstep telling me I've been a naughty boy and if It happens again within the next 12 months I'll be hit with a 2% penalty (which will go up on each transgression), I made sure to pay this quarter as soon as my accountant calculated the amount due!

[ASB]

thanks for the replies; i didn't request VAT to be added and have no desire to register for VAT. the invoice was generated by them after advising online my days worked eg day rate x 5, for week 1. my concern is if they make the same mistake again, is my company liable for the 'overpayment'? obviously i can speak to them; but wanted to know what the law states.

The company is liable for any overpayment. Though if you can wait 6 years you might be ok.

It is not necessarily a question of whether or not you have a desire to register for vat. There is a point at which you have to based on turnover. Whether you will reach that or not I don't know of course.

[northernladuk]

thanks for the replies; i didn't request VAT to be added and have no desire to register for VAT. the invoice was generated by them after advising online my days worked eg day rate x 5, for week 1. my concern is if they make the same mistake again, is my company liable for the 'overpayment'?

Dunno the legals but you've been given money that isn't yours. Call the agency, tell them and give it back. Don't bugger about with VAT money if you are registered or not.

And why don't you want to register for VAT? Get yourself of FRS and you make money on the perc...oh... hang on...

[zimmerman90]

reply..

thanks for the replies; i didn't request VAT to be added and have no desire to register for VAT. the invoice was generated by them after advising online my days worked eg day rate x 5, for week 1. my concern is if they make the same mistake again, is my company liable for the 'overpayment'? obviously i can speak to them; but wanted to know what the law states.

[craigy1874]

If you're not registered for VAT, give the agency a call and let them know. Then ask if they want it returned or will they deduct from the next invoice.

Have you spoken to your accountant about being VAT registered?

Hardly likely to be much point once new flat rate rules come in.

[Darren at Fox-Bartfield]

Invoicing

Yes they will and if self billing, they should take care of it themselves but OP won't know until he chats with them.

Otherwise they'll keep sending an extra 20% on each remittance.