Reply to: VAT registration slowing me down

[Ardesco]

For point 1 it depends upon your accounting structure.

You can pay the VAT by either date you invoice, or by date you receive funds. Just don't switch between the two because you are bound to get mixed up and get a payment wrong.

I personally pay VAT out by invoice date because I find it easier to just pull out all the invoices I have created in the past 3 months rather than sorting through the company bank account to see what has been paid in the past 3 months.

You will make a tiny bit more interest if you pay it according to when you receive funds.

If in doubt ask your accountant, it is what he's there for.

[Bluebird]

cheers guys,

sorry about the questions,

I bill agency weekly, and would be going for the flat rate scheme

1) when would i have to pay the VAT portion to HMRC ?, is it when agency pays me or when I invoice ?
2) how often do i pay HMRC, monthly, quaterly , Haphazardly..., end of the year ! ?

3) Is it safe to assume that apart from the little doh you make on what you give back to HMRC that you also generate a few bob in interest for the whole year

4) Unrelated question -- can any one recomend a self assessment/tax return software on the market ?



cheers css_jay99

1. VAT is normally a quarterly return.
2. isn't that the same question as 1 ?
3. yes, but don't forget you show that as profit and is therefore subject to Corp Tax.
4. HMRC

[css_jay99]

cheers guys,

sorry about the questions,

I bill agency weekly, and would be going for the flat rate scheme

1) when would i have to pay the VAT portion to HMRC ?, is it when agency pays me or when I invoice ?
2) how often do i pay HMRC, monthly, quaterly , Haphazardly..., end of the year ! ?

3) Is it safe to assume that apart from the little doh you make on what you give back to HMRC that you also generate a few bob in interest for the whole year

4) Unrelated question -- can any one recomend a self assessment/tax return software on the market ?



cheers css_jay99

[Ardesco]

Oh that.

Nope, as soon as you get the certificate you will be paying him VAT anyway and you can't collect it until you have the cert.

Don't worry about it, as anal as he is the VAT man isn't stupid (It's Hector who doesn't have common sense)

[oraclesmith]

The annual turnover threshold above which you must register for VAT. It's about £60k

[Ardesco]

threshold ?

[css_jay99]

cheers,

since I am now puting all my invoices via Ltd co. I have gone over the threshold. Assuming i get no reply back from the VAT man for another couple of months, would there be any penalties.... afterall, I have submitted an apllication

cheers

css_jay99

[Ardesco]

You invoice for VAT from the date stated on your VAT certificate. So if your VAT certificate says it is valid from 1 May 2007 you work out VAT for all the invoices you have charged since 1 May 2007 and send an invoice off to the agency for that amount.

[css_jay99]

Inovice without VAT now and as soon as you get you VAT Cert send off a VAT invoice for all VAT owed, simple

When i get the VAT cert, do I have to send VAT invoices from when i sent the application or can I for simplicity just start billing VAT from when I receive the cert?

cheers

css_jay99

[Ardesco]

You can invoice for VAT when you are VAT registered and not before. There is always the possiblity your application could be refused and if so the person paying VAT to you would be out of pocket.

Inovice without VAT now and as soon as you get you VAT Cert send off a VAT invoice for all VAT owed, simple

[css_jay99]

Hi guys, I registered online (4 weeks ago) for VAT and have not heared anything.

I would like to know when i can start charging or invoicing my Agency for the VAT element ?


cheers

css_jay99

[bellymonster]

My previous post mentioned that I'd not had mt cheque back from Cater Allen.
Just noticed they decided to cash it today.

When I checked with them the woman said the account had been created even though it clearly said on the record that I had canceled the request.

What ever happened to customer service....

[Langkawi]

Since this post of mine has resurfaced I'll offer an update.

After much consultation with their 'legal team' the pimps have agreed to accept invoices before my VAT registration comes through but won't pay out any VAT until the registration comes through!

Doh!

Its taken them two weeks to get to exactly what I suggested in the first place. Its good to see that they are earning their cut!

Cheers,
Alan

[timh]

I have 5 weeks of unpaid invoices at the agency waiting for Cater Allen to provide me with a bank account.
I have used up all my personal money [...]

Jesus. Try to learn from that!

[bellymonster]

I second HSBC, they created the account in 1 hour (ready to receive payments) and I had all cheque and paying in books within a couple of days.

They are also free for life if you opt for the direct account.

I was waiting for Cater Allen but despite cancelling procedures over 3 weeks ago they still have not returned my cheque.

Still waiting for VAT registration since mid April (probably got a few weeks yet).