Not VAT registered but been paid VAT

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shelby68 replied

13 May 2008, 13:35
Originally posted by xoggoth View Post

Nowt to do with VATman, its agency's money paid in error. How about being honest?

Sorry I had to laugh it's not very often I see the words agency and honest in the same sentence without a punchline at the end of it.
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DaveB replied

13 May 2008, 13:35
On a side note, you say that you are not registered for VAT since your "take home" is below the threshold.

You do realise that it's not what you earn personally that counts, it is the amount your business turns over in a year. i.e. how much you invoice for over the financial year.

Even if your turn over is below the threshold it is worth registering anyway as you can claw back a far bit using the Flat Rate Scheme. It saves me a couple of thousand a year atm. It also avoid cock ups like this.

Last edited by DaveB; 13 May 2008, 13:38.
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Matc replied

13 May 2008, 13:31
Ill speak to the agency and see what they say, im sure they will be contacting me anyway once they have realised their mistake
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xoggoth replied

13 May 2008, 12:35
Nowt to do with VATman, its agency's money paid in error. How about being honest?
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SueEllen replied

13 May 2008, 09:22
Send them the money back.

Don't get involved with the VAT man.
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Matc started a topic Not VAT registered but been paid VAT

13 May 2008, 08:55
Not VAT registered but been paid VAT

Hello everyone

Im self employed and not VAT registered as my take home each year is below the threshold where you have to register yourself for VAT.

I invoiced my current agency on the job im working on at the moment 10 days ago for 3 weeks work, on the invoice it quite clearly stated VAT exempt, and on all the paperwork I sent back to them when I started I told them I was not VAT registered. They have paid me today and from checking my online banking they have added 17.5% on top of the total figure I put down in the invoice.

My question is should I keep quiet as its a mistake on their part, is there anyway it could come back to me if i dont tell them it was a mistake, its basically an extra £450 they paid me. Im not VAT registered so its not like im going to get inspected, and I can change my invoice when I see my accountant at the end of the year when he works out my tax. Or should I ring them and tell them they made a mistake?

Cheers

Mat
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