Not paying VAT!

[scotspine]

I direct a VAT registered Ltd. company in **construction** and have recently been told by a company that I have invoiced that they only pay VAT at the end of the month! This effectively means that I will recieve a due payment ( mid-month ) but without the VAT that I invoiced? Can this be right?

i take it that is software construction, right?

[BolshieBastard]

Morally, its wrong on two counts. One, they arent paying the full bill on time in accordance with your T&C's and two, you could have to pay the VAT to HMRC (depending on when your return is due) without having recieved it!

I found in another business I had that other companies took the piss when paying (or rather not) bills saying despite agreeing to my T&C's of payment in full within 30 days, that they only paid at month end after the month the invoice was recieved. Bastards!.

Tell them you'll apply a late payment fee to their account since they havent settled in full by the due date. Be prepared for them to ignore this or take their business elsewhere though!

[tymbian]

I direct a VAT registered Ltd. company in construction and have recently been told by a company that I have invoiced that they only pay VAT at the end of the month! This effectively means that I will recieve a due payment ( mid-month ) but without the VAT that I invoiced? Can this be right?