Reply to: Invoicing for backdated VAT

[Mustang]

I requsted my registration start from the beginning of the month. From that point onwards I carried out the following:-

1) Issued all invoices with VAT number applied for on them

2) Once the VAT number had arrived, updated the invoices with the VAT amount added.

3) Re-issued the invoices with a covering letter stating that the VAT element was now due.

Above was advised by the VAT helpline.

[Troll]

Mine took two weeks to come through and become affective. I started invoicing for VAT once i got my number from HMRC. Decided to keep it simple.

It depends what date you asked for your VAT to be effective from

[dotnetter]

He he,

[Bluebird]

great news, now all you have to do is supply your company details and we'll invoice you for our advice

[dotnetter]

Just got a reply saying it's will be cleared into my account by Friday!

[dotnetter]

Thanks for that, I looked through the site and sent an email informing the agency that the invoice is well over 30 days overdue and im within my rights to start charging interest.

See what they say i suppose.

[TheFaQQer]

Have a look at the Better Payment Practice website which tells you how to chase bad debt - that's effectively what this is, so you may as well charge them interest and penalties for not paying on time.

HTH,

Faqqer

[PAG]

Agencies are just earning interest on the money. simple.

[oraclesmith]

Well you could ask for their advice in writing and they have to respond in writing, which is what I did. If your client gets difficult you can always explain this to Her Majesty's VAT helpline. Sometimes these clients need to be reminded of their obligations to the Crown!

If you don't want to get HMRC involved, you could always get your accountant to produce something if they're onside.

[dotnetter]

I didn't get a letter from HMRC my accountant advised me to do it!

[oraclesmith]

I attached a letter I got from the HMRC instructing me to collect the VAT from <client>. Seemed to do the trick. After all it is their money.

[dotnetter]

You can't say "payment due from date of invoice2 - they will always be late.

What does it say in your contract ?

Better to say payment due on xx/xx/xxxx as per terms of contract - xx days from date of invoice.

Yeah true I need to dig out the contract really.

I think I'm putting enough pressure on them to deal with it by the end of the week, if it's not in my account by then I think I'm going to have to start doing soemthing about it.

[Bluebird]

I do lol!

at the bottom of my invoices it says

PAYMENT DUE FROM DATE OF INVOICE!

Its for 2.5 grand as well, and they had constantly been late in paying invoices. I've email them several times and got a 'we are looking into it' reply

You can't say "payment due from date of invoice2 - they will always be late.

What does it say in your contract ?

Better to say payment due on xx/xx/xxxx as per terms of contract - xx days from date of invoice.

[dotnetter]

I do lol!

at the bottom of my invoices it says

PAYMENT DUE FROM DATE OF INVOICE!

Its for 2.5 grand as well, and they had constantly been late in paying invoices. I've email them several times and got a 'we are looking into it' reply

[Bluebird]

Yep I've done the same mine took quite a bit longer than usual, and I'm still waiting for the invoice to be paid!

The invoice should be paid under the same terms as any other - i.e. 14 / 28 days - you should make sure you stipulate the payment terms on the invoice whatever it's for.