Reply to: VAT payment query

[Beefy198]

Michael Page called a friend of mine on Thursday and left an answer phone message.

"Your invoice has incorrectly applied the new rate of VAT, you need to send us a new invoice ASAP"

They conveniently waited four days to discover this Fearing non-payment, he checked his account the next morning but, against all the odds, it was in there. But with 17.5% VAT added rather than 15%.

He called the payroll department and got through to some office monkey who said "the work was done in a week at the old rate, so that's the rate you need to invoice at". He argued it and was told the "financial controller" would call him back to explain why he needs to produce an invoice at 17.5%. No call back as of yet.

I've told him to just drop it though he's worrying they'll now hold up future payments claiming that he still hasn't sent an amended invoice. Friday should be interesting....

[dmini]

I have now been told to email emma.l.brown@theusualaddress - stating that they need to pay me the additional amount.
Apparently she has the job of sorting it all out. Feel sorry for her!
Will see how it goes.
Anyway - those of you at Hays - work out the address and email her demanding the dosh!

[gingerjedi]

I did the same as you, invoice dated November posted on the 28th but not received in post by agency until the 1st Dec. Got remittance note today from them with VAT @ 15%.
The problem here is most agencies don't even read invoices, they just bin them and go on the date they received the last timesheet of the month.

I think it's reasonable to ask for the extra VAT but if they refuse then just issue another invoice dated 1st Dec for the November work and then alter your SJD "DIY accounting" spreadsheet accordingly.

How quaint.

I always email mine with a delivery notice and read receipt, I also put the due date as the last working day no mater when they intend to pay it.

[slackbloke]

if you are sending the invoice today it should be at 15% however if you sent it in November it would have been 17.5%

That is not correct. I have an invoice for w/e 7/11. If I sent it today dated 09/12 the VAT rate will 17.5% because the 14 day rule applies.

[Ardesco]

if you are sending the invoice today it should be at 15% however if you sent it in November it would have been 17.5%

[slackbloke]

I did mention to the character I spoke to at Hays this morning, that their name was all across the forums here & PCG.
He sounded a bit panicky tbh. Said he was going to escalate this - think his phone was a bit hot this morning!
Hopefully a solution will come soon from them

I have the details of the communication sent within Hays regarding this last week. The most important line being this :

Timesheets for W/E 28/11/08 (payable 05/12/2008) and thereafter SHOULD BE CLAIMED AT 15%

Not really sure how they can do this as it is clearly in contravention of HMRC regs. It seems Hays are determining your taxpoint by their own method.

I am sending invoices today for November @17.5% and have included the HMRC documentation. Not that they are likely to pay a blind bit of attention to it it seems.

[dmini]

I did mention to the character I spoke to at Hays this morning, that their name was all across the forums here & PCG.
He sounded a bit panicky tbh. Said he was going to escalate this - think his phone was a bit hot this morning!
Hopefully a solution will come soon from them

[GreenerGrass]

Why didn’t people see this coming? I just invoiced for the whole of November at 17.5% on the last working day which was the 28th, I emailed my agent and they said as long as the invoice has a date before the 1st of December then that would be correct.

Some people do make it difficult for themselves!

I did the same as you, invoice dated November posted on the 28th but not received in post by agency until the 1st Dec. Got remittance note today from them with VAT @ 15%.
The problem here is most agencies don't even read invoices, they just bin them and go on the date they received the last timesheet of the month.

I think it's reasonable to ask for the extra VAT but if they refuse then just issue another invoice dated 1st Dec for the November work and then alter your SJD "DIY accounting" spreadsheet accordingly.

[ghl]

Well for weekending 28th Nov, one agent paid me at 17.5% VAt and the other at 15% VAT.....mind boggling!

What do i need to do? just keep quiet or correct the one paying me 17.5% rate?

Depends when the invoices were raised. If you raise the invoices yourself (ie you're not on some self-billing scheme) and they were dated before 1st December then they should have 17.5% VAT added to them.

If you're on a self-billing scheme then then one agency may have the tax point before 1st December and the other may have been after 1 Dec. Who knows? From my experience the agencies are only slightly more clued up than the average noob contractor.

[diesel]

Well for weekending 28th Nov, one agent paid me at 17.5% VAt and the other at 15% VAT.....mind boggling!

What do i need to do? just keep quiet or correct the one paying me 17.5% rate?

[dmini]

Hays.

I'd be interested to know if this has happened elsewhere as I know it's not just me it's happened to.

Yes - me - about to start a discussion with them on Monday - they require the invoice to be for the Friday - so should flipping well pay it properly.

Was thinking of reporting them for VAT evasion personally

[pmeswani]

Hays.

I'd be interested to know if this has happened elsewhere as I know it's not just me it's happened to.

Ask them what they would charge if the VAT rate went up to 18.5% after the invoice was raised showing the 15% rate. Would they be inclined to give you the extra 3.5%? (18.5% is a ficticious figure based on the leaked memo indicating that the rise was considered).

[ghl]

Name and shame.

Hays.

I'd be interested to know if this has happened elsewhere as I know it's not just me it's happened to.

[pmeswani]

MyCo invoiced my agency last week, invoice dated 28th November so VAT added at 17.5%. Get my remittance advice today and they have paid me an amount equivalent to Net+15%.

Rang them: their explanation is that the VAT rate in force when they settle the invoice is what they pay! I say, Er, no, that's not right - you need to pay me what's on the invoice. They go away and speak to a supervisor and come back to me and say "you need to issue a credit note to balance your accounts"

Needless to say, an email has gone off to their accounts department. I know it's not my money anyway, but FFS!

Tell them that if they refuse to pay the invoice in full within 14 days, you will refer this to your solicitors and a debt recovery company, and will charge them the cost of recovering the debt.

[neilmcl]

Name and shame.