Invoice without VAT?

[blacjac]

Unfortunately, with HMRC things aren't that clear.

For example, when I started a Ltd co on 17th March 2006 I requested VAT registration around 25th April on accountants advice.

Took HMRC nearly 12 weeks to issue a VAT cert, which was dated 6th April....

By Law I then had to go back and issue VAT invoices for all Invoices I had issued from 6th April.

Unfortunately as I hadn't actually applied for VAT till the end of April, around half of these invoices had nothing about VAT on them, the other half had "VAT Registration Applied For" in the footer.

What I did was issue VAT only invoices to all of them, and attached a copy of my VAT certificate to them. I phone them all to explain why this had happened.

All of them paid the VAT only invoce with no quibble.

So yes you are correct in that you shouldn't mention VAT on invoices if you haven't applied. However if the HMRC decide they want to, they can back date your application to any time in your companies trading issue, forcing you to collect VAT for non VAT invoices that have actually been settled already!

[dmini]

Not quite....

If you HAVEN'T submitted a registration for VAT you cannot charge it later to my knowledge. Most of what is talked about above assumes you have requested VAT registration, but haven't got it yet.
My reading of your post is that you havent actually got round to talking to VAT people and starting registration process. At which point these invoices will never get VAT on them I believe. Could be wrong though, but imagine that you payed a bill for summat then a year later got a VAT invoice cos they had decided to register for VAT 9 months after your business transaction. You would be pretty miffed I expect. Same applies above possibly - shorter timescales but same principle

[blacjac]

There was a thread on here not long ago where someone did as you suggest and it took them ages to sort it out. Why? Because they didnt use a bit of forward thinking to remove the chances of further errors creeping in.

Come on then clever arse, where did I suggest to do anything on this thread?

[BolshieBastard]

No you don't.

You can if you want, but you don't have to.

You love making life difficult for yourself, dont you?

If you dont do as I suggest, dont be surprised if you get lots of phone calls and maybe even overpaid. OK you've got the extra cash but you're going to have to spend time sorting it out.

There was a thread on here not long ago where someone did as you suggest and it took them ages to sort it out. Why? Because they didnt use a bit of forward thinking to remove the chances of further errors creeping in.

Have a nice day!

[blacjac]

Actually you do have to re invoice for the full amount including VAT but show a credit for the previous invoiced amount less VAT.

No you don't.

You can if you want, but you don't have to.

[BolshieBastard]

Yes spot on. Invoice now and keep a track of the VAT liability. When your VAT registration comes through..in a couple of months, raise a single invoice for all of the VAT.

Actually you do have to re invoice for the full amount including VAT but show a credit for the previous invoiced amount less VAT.

[pmeswani]

Yes spot on. Invoice now and keep a track of the VAT liability. When your VAT registration comes through..in a couple of months, raise a single invoice for all of the VAT.

Not forgetting the usual clause "VAT amount to be applied...." bit.

[TheRefactornator]

Yes spot on. Invoice now and keep a track of the VAT liability. When your VAT registration comes through..in a couple of months, raise a single invoice for all of the VAT.

[floehopper]

I've just started freelancing via my limited company. I'm not currently registered for VAT, but I am intending to register. I want to issue my first invoice. Am I right in thinking I can invoice now excluding VAT and later issue an invoice for just the VAT...?

Thanks.