This is a common "problem" as most clients expects you to charge them the net amount and to add the VAT on top. If you do add VAT on the gross amount you are making a profit on the expenses.
Anyway, I always add my VAT on top of the gross amount and this is not to make a profit but to avoid going through every receipt to find the net amount. What's the point of being in the flat rate scheme if you still need to go through all your receipts to find what the net amount is?
I have considered charging the client an admin fee when they ask for this, but instead I just charge them the gross amount and add VAT and they never pick up on it.....
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Consulting firm refusing to pay invoice
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Consulting firm refusing to pay invoice"
Collapse
-
Originally posted by kempc23 View PostIts not £20, its around £100. Still not a lot, but not £20. The £20 figure just relates to one invoice.
Leave a comment:
-
Originally posted by kempc23 View PostIts not £20, its around £100. Still not a lot, but not £20. The £20 figure just relates to one invoice.
Good luck.
Leave a comment:
-
Originally posted by kempc23 View PostI AM an accountant
HM Revenue & Customs: Costs passed on to clients - disbursements - and VAT
You seem to be arguing a lot with people who don't agree with you. Just don't follow their advice.
So go after the £100.
Or not and get your £10k back.
The choice is yours. Good luck for tomorrow.
Leave a comment:
-
Its not £20, its around £100. Still not a lot, but not £20. The £20 figure just relates to one invoice.
Leave a comment:
-
Originally posted by contractoralan View PostWhat the consulting firm is suggesting is quiet commonplace in the industry, as far as I understand.
if you spend,120 out of which 20 is VAT, then you re-charge only 100 because you will be reclaiming the 20 anyway from HMRC. They do the same to their customer.
Leave a comment:
-
What the consulting firm is suggesting is quiet commonplace in the industry, as far as I understand.
if you spend,120 out of which 20 is VAT, then you re-charge only 100 because you will be reclaiming the 20 anyway from HMRC. They do the same to their customer.
If you are charging 120+24, then their cost is increasing by 20%. You are loosing money because your co is on flat rate [ and that is not their "problem" ]
As far as I understand, HMRC cannot say that you have to charge 120+VAT. That is the matter between your co and the client co. [ ie, you can agree to charge only non-vat of your expense to your client and HMRC have no say]
The Operations Director may be technically wrong, but that is how these things work in practice.
Of course, this argument does not hold good for travel expense which is not VAT-able.
If you have big money at stake, take them to court and you will definitely win - in line with what your accountant says.
But the reality is, working practices in the industry is different.
Forget it and price it into your rate in the future.Last edited by contractoralan; 17 March 2012, 19:10.
Leave a comment:
-
Originally posted by kempc23 View PostNot pig headed people or thick people, no.
I can see you´re going to go far....
Leave a comment:
-
Originally posted by kempc23 View PostI AM an accountant
I think you were the one who had trouble understanding it weren't you? I'm hardly being argumentative but these are the exact same conversations I have already had. Because you aren't bright enough to understand it isn't my problem surely?
Sending someone in a senior company position a long email means there is a risk that it won't be read at all, or read properly even if they can understand it.
Leave a comment:
-
Originally posted by kempc23 View PostI AM an accountant I think you were the one who had trouble understanding it weren't you? I'm hardly being argumentative but these are the exact same conversations I have already had. Because you aren't bright enough to understand it isn't my problem surely?
Leave a comment:
-
Originally posted by BlasterBates View PostI´m trying to explain the Opeartions Director reasoning.
It strikes me you haven´t understood the general principle of VAT and why travelling expenses are an exception.
You need to talk to your Accountant again and he´ll explain it.
Having seen how argumentative you are on here with people trying to give advice I´m not surprised she dug heels in.
I AM an accountant
I think you were the one who had trouble understanding it weren't you? I'm hardly being argumentative but these are the exact same conversations I have already had. Because you aren't bright enough to understand it isn't my problem surely?
Leave a comment:
-
Originally posted by kempc23 View PostIts not just travel expenses though, its all recharged expenses. And its NOT being paid twice! Its a long way past having an amicable conversation. I have already done that, and explained very clearly why she was in the wrong. She was not interested. She had already decided a long time ago that she was not going to back down. Seriously, what sort of person says "if you don't agree, then get your legal advisors to get in touch with me"?
It strikes me you haven´t understood the general principle of VAT and why travelling expenses are an exception.
You need to talk to your Accountant again and he´ll explain it.
Having seen how argumentative you are on here with people trying to give advice I´m not surprised she dug heels in.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: