Reply to: Vat

[XTC]

XTC, this sounds like total BS. Apart from the percentage and starting thresholds, VAT is *exactly* the same as GST in Oz.

So, basically you tried to scam HMRC and now you find you can't get away with. Tough tulip.

Padinka

Well you haven't read my posts. This isn't some scam that I haven't got away with. I haven't claimed any VAT so how can this be a scam. And I tried to register for VAT, but the bureaucratic process meant it has taken over 8 months. My accountant recommended that I not register for VAT, but speak to HMRC and strike a deal. Ignorance isn't an excuse, but I was told initially I didn't need to register for VAT and that's the advice I followed. If I now get hit with a big VAT bill that's my fault for not being pro-active and for being ignorant, I'll just have to deal with it. Don't jump to conclusions in future, there's a good boy.

[padinka]

Heard of GST?

XTC, this sounds like total BS. Apart from the percentage and starting thresholds, VAT is *exactly* the same as GST in Oz.

So, basically you tried to scam HMRC and now you find you can't get away with. Tough tulip.

Padinka

[oraclesmith]

If you've been invoicing with the note that VAT has been applied for, there won't be any problem re-invoicing the VAT in arrears and the agency should pay up - after all VAT, isn't their money, and they will have been putting VAT on their bill to your client.

Volutary or not, VAT is still mandatory if you are (or are about to be) registered.

Ah, but the difference is in the registration date. If you've heard nothing from VAT about your date and you are voluntary, you have nothing to work on and you cannot actually collect the VAT until you have a date. They may not agree to your own date and may set your reg. date much later.

If you're going over the threshold, then you must collect the VAT for them and they should set the date to the 1st of the month after the month you exceeded the threshold.

[youngguy]

Probably.

Need to put my fingers on a diet so that they hit one key rather than two )

[TheRightStuff]

If you've been invoicing with the note that VAT has been applied for, there won't be any problem re-invoicing the VAT in arrears and the agency should pay up - after all VAT, isn't their money, and they will have been putting VAT on their bill to your client.

Volutary or not, VAT is still mandatory if you are (or are about to be) registered.

I've have the same problem. Two invoices with no VAT added. Next to the VAT number i've put TBA. I've also e-mailed the agency telling them I will send them a 'VAT ONLY' invoice once I have been registered. Is that enough to cover it?

[Xenophon]

Sure it isn't just a typo in his post?

Probably.

[wizard1974uk]

First thing I would do would be to correct the typo on my invoices.

HTH

Sure it isn't just a typo in his post?

[malvolio]

I applied for FRS in March and am still waiting. My invoices say "VAT: Penfding" and I am about to leave this contract and start another. I've emailed my accountant asking if there is anything I should do, what are your thoughts Mav? Do I just invoice the 'old agency' in months to come when I get VAT registered?

If you've been invoicing with the note that VAT has been applied for, there won't be any problem re-invoicing the VAT in arrears and the agency should pay up - after all VAT, isn't their money, and they will have been putting VAT on their bill to your client.

Volutary or not, VAT is still mandatory if you are (or are about to be) registered.

[Xenophon]

I applied for FRS in March and am still waiting. My invoices say "VAT: Penfding" and I am about to leave this contract and start another. I've emailed my accountant asking if there is anything I should do, what are your thoughts Mav? Do I just invoice the 'old agency' in months to come when I get VAT registered?

First thing I would do would be to correct the typo on my invoices.

HTH

[oraclesmith]

Depends if you're voluntary or over the threshold. If the latter, you should have been charging VAT already I believe. If not, then I don't think you'll be able to collect any VAT before your reg. date.

[youngguy]

My point is would you let something that important drift for 8 months? Knowing it was going to screw you royally in a short while? On the few occasions I've had to call the VAT people, they have been unfailingly helpful and responsive (unlike the IR guys...).

As for back-invoicing the missing VAT, as long as he's been putting "VAT Registration applied for" on his invoices, that is exactly what he should do, quoting the relevant original invoice numbers. It might still be possible if he hasn't, but the chances of a delayed or non payment are rather higher in that case. The VAT is owed regardless.

Depressing, isn't it...

I applied for FRS in March and am still waiting. My invoices say "VAT: Penfding" and I am about to leave this contract and start another. I've emailed my accountant asking if there is anything I should do, what are your thoughts Mav? Do I just invoice the 'old agency' in months to come when I get VAT registered?

[mjshrimpton]

XTC, your problem is nothing to do with the 'Offshore Disclosure process'.

I suggest you get onto your accountant asap and work out how much VAT should of been added to your invoices and ask how they are going to help solve the problem.

I disagree. The penalties on this will be huge, and the accountants help will be to figure out what VAT should have been charged, nothing more, nothing less. It is not their fault, and they have no liability.

Register for the disclosure scheme to minimise the penalties that will undoubtedly be due when you come to present this all to HMRC.

[rootsnall]

Could that be because it is not her facing it, and as your accountant she is not negligent?

Use the Offshore Disclosure process and at least minimise the penalties you will face.

XTC, your problem is nothing to do with the 'Offshore Disclosure process'.

I suggest you get onto your accountant asap and work out how much VAT should of been added to your invoices and ask how they are going to help solve the problem.

[mjshrimpton]

My accountant has been pretty good, but her attitude towards payment/registering of VAT has been fairly casual. There certainly hasn't been any talk of £30K+ bills and jail!

Could that be because it is not her facing it, and as your accountant she is not negligent?

Use the Offshore Disclosure process and at least minimise the penalties you will face.

[XTC]

My accountant has been pretty good, but her attitude towards payment/registering of VAT has been fairly casual. There certainly hasn't been any talk of £30K+ bills and jail!