Reply to: Backdated VAT

[jmo21]

No! They aren't going to. She used the phrase 'not up for discussion' and said that their local VAT office had told them they didn't have to pay VAT if they hadn't seen the certificate. I rang the HMRC VAT helpline yesterday, and the advice was 'No, they cannot refuse to pay it'. I think I can kiss goodbye to getting work through this agency anymore lol.

fair enough

Did HRMC advise you what to do next?

[gary3306]

This suggests they ARE going to pay it once the copy of the VAT cert is received.

No! They aren't going to. She used the phrase 'not up for discussion' and said that their local VAT office had told them they didn't have to pay VAT if they hadn't seen the certificate. I rang the HMRC VAT helpline yesterday, and the advice was 'No, they cannot refuse to pay it'. I think I can kiss goodbye to getting work through this agency anymore lol.

[jmo21]

*disengage smug mode*

[SueEllen]

If they really wanted to check the VAT number, they would use a service like VIES

No because a photocopy of a VAT certificate is clearly more authentic....

[fidot]

It's just an excuse

If they really wanted to check the VAT number, they would use a service like VIES

[LondonManc]

Not sure you're why your quoting me on that?

Don't take offence, I was just clicking on the Reply button and wasn't scrolled down enough to remember the other one is the basic reply button

[meridian]

I was simply suggesting there is not a can of worms being opened for him IF they pay the backdated VAT.

And really, what harm is it actually causing other contractors assuming they DO ask for the cert up front (every agency I've worked through have done this)?

Then you've missed the nuance of the OP's previous posts - the agency is stating that they will not pay the VAT on invoices received, despite the OP being registered and entitled to charge VAT.

The harm caused is that it is likely that they are also doing this to other contractors, some of whom will simply roll over and accept it and therefore may fall foul of HMRC if they are investigated, for not declaring all income in their VAT return.

[jmo21]

Agencies have to do it for due dilligence. If they've forked up and failed to do so, it potentially leaves them open to VAT fraud if you're charging it without being authorised to do so. If you've proved that you've been VAT registered since such-a-date then I can't see the problem with the VAT being back-dated.

Not sure you're why your quoting me on that?

[LondonManc]

I was simply suggesting there is not a can of worms being opened for him IF they pay the backdated VAT.

And really, what harm is it actually causing other contractors assuming they DO ask for the cert up front (every agency I've worked through have done this)?

Agencies have to do it for due dilligence. If they've forked up and failed to do so, it potentially leaves them open to VAT fraud if you're charging it without being authorised to do so. If you've proved that you've been VAT registered since such-a-date then I can't see the problem with the VAT being back-dated.

[jmo21]

That would be the easiest path for the OP, but the agency would still be working on incorrect information for all future contractors. Much better to get HMRC involved to pay a site visit to them and put them straight.

I was simply suggesting there is not a can of worms being opened for him IF they pay the backdated VAT.

And really, what harm is it actually causing other contractors assuming they DO ask for the cert up front (every agency I've worked through have done this)?

[meridian]

Not really. Can't you just send them a copy of the cert, and they'll pay the VAT?

They may well be wrong, and not admitting to the mistake, but assuming they ARE going to pay it, it's not the end of the world?

That would be the easiest path for the OP, but the agency would still be working on incorrect information for all future contractors. Much better to get HMRC involved to pay a site visit to them and put them straight.

[jmo21]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

Not really. Can't you just send them a copy of the cert, and they'll pay the VAT?

They may well be wrong, and not admitting to the mistake, but assuming they ARE going to pay it, it's not the end of the world?

[MrMarkyMark]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

Edit, sorry misunderstood what the OP was saying, yes they have to see the cert, but they still have to pay the backdated VAT once it is seen.

[gary3306]

Well I've just had a rather snotty email from the lass who does all their VAT etc, who said that what I had been advised of is factually incorrect, in that they do not have to pay VAT on invoices received BEFORE they have seen a copy of my VAT reg certificate. She went on to say that that had come from there local tax office. So, can of worms.......begin

[gary3306]

.......... Do they ask for a copy of Domino Pizza's VAT certificate when they get the pizzas in for the late night working?

This made me LOL properly