VAT Overpayment

[malvolio]

OK Mal points/bollocking taken although in my defence my contract was unexpectedley not renewed after xmas (not my fault I hasten to add).

I was going to say "But isn't it fair to say that the £4k is really the agencies money in reality?" But I think your "you're supposed to be checking it properly" comment kind of answered that - any discrepencies must be reported straight away (even if it is the agencies money)???




Yes that's whats happened. Agency have paid me the VAT they owe me (or the VAT man should I say ) plus another 4 odd grand.

My point is simply that you are a Comapny Director and have legal responsibilirities. One of them is keeping an audit trail for all YourCo's incomings and outgoings. Another one is ensuring you are not trading insolvently.

Suddenly dropping out of contract is a nightmare and we've all been there, but your records should have been straight anyway - certainly straight enough to notice missing VAT payments...

And to answer your original question now I've read it properly , give it back to the agency and tell them you're not impressed with their accounting practices which have put you to additional time and trouble. Won't help, but it might make you feel better!

[the average man]

Sounds like you not the best prepared to be out by yourself, doesn't it? For one thing VAT is not your money nor is it the agency's. Glad to see you've been paying attention.

Put the money in a high interest a/c (you can keep the interest). At your next VAT payment point, work out what you should have paid to date, what you have paid, what the difference is and call the VAT helpline and tell them. If you're lucky they may just treat you as inept and not fine you for misrepresentation. The declaration on the VAT100 is not a get out of jail free card, you're supposed to be checking it properly.

Or keep any of it and have three years in jail to make up- seriously. Rule 1 of business - do not ever mess with the VAT man.

And learn to manage your money and YourCo's money properly. You've got yourself into the mess, nobody else.

OK Mal points/bollocking taken although in my defence my contract was unexpectedley not renewed after xmas (not my fault I hasten to add).

I was going to say "But isn't it fair to say that the £4k is really the agencies money in reality?" But I think your "you're supposed to be checking it properly" comment kind of answered that - any discrepencies must be reported straight away (even if it is the agencies money)???

If the agency have paid you more than the VAT due by mistake it is their money and you should give it back to them. If you want to be a dishonest barsteward that is entirely up to you.

Yes that's whats happened. Agency have paid me the VAT they owe me (or the VAT man should I say ) plus another 4 odd grand.

[xoggoth]

TBH I am not quite clear what you are saying but if I understand correctly you have been paid more to cover VAT than was actually due as VAT. You only owe the VATman what is due on your invoices, so keeping it is nothing to do with "messing with the VATman".

If the agency have paid you more than the VAT due by mistake it is their money and you should give it back to them. If you want to be a dishonest barsteward that is entirely up to you.

[HYpno27]

WHS - don't mess with HM VAT man (or woman) he /she are infamous for their lack of humour. They will **** you up

[malvolio]

Sounds like you not the best prepared to be out by yourself, doesn't it? For one thing VAT is not your money nor is it the agency's. Glad to see you've been paying attention.

Put the money in a high interest a/c (you can keep the interest). At your next VAT payment point, work out what you should have paid to date, what you have paid, what the difference is and call the VAT helpline and tell them. If you're lucky they may just treat you as inept and not fine you for misrepresentation. The declaration on the VAT100 is not a get out of jail free card, you're supposed to be checking it properly.

Or keep any of it and have three years in jail to make up- seriously. Rule 1 of business - do not ever mess with the VAT man.

And learn to manage your money and YourCo's money properly. You've got yourself into the mess, nobody else.

[the average man]

I didn't work for the whole of January and started a new contract in February where I have been up until present.

I only realised last week that my agency haven't been paying me the VAT on top of my gross rate. I've raised this with them and they've sent the refund out only to find they've overpaid by about £4000. I haven't raised this with the agency and they haven't made contact with me about it yet either.

My agency issue me with self-billing invoices which I forward onto my accountant with my expenses. They have sent me an invoice for the VAT refund (with the same incorrect figure that they've actually paid me) which I should(?) forward to my agency. I'm going to be leaving my current client and agency at the end of May for a new contract hopefully (interview this week).

I've seen there's another thread about overpayments and a lot of the advice is "just stick in a high interest savings account" - yeah but until when exactly?? What if the agency don't want to know?? Thing is that £4k would plug a nice gap in my co. bank account for dividends/directors loans I've taken during and around January so umm... it would be nice to hang onto that... err indefinitely, so how would I acount for it?

VAT is due end of May so I was thinking of knocking up an invoice for the true unpaid VAT and sending that to the accountant and keeping schtum about the £4k.

My agency is one of the big boys so I don't have a bad conscience on hanging onto this cash. They've been twats to me anyway