newly vat registered
Out of context: Reply #10
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- Horp0
Lee, if you have invoiced without VAT after passing the VAT threshold, you have to write to that client and explain that you omitted the VAT surcharge and ask them if they can process a VAT amount invoice for you.
Its down to their disscretion whether they agree to do this or not, but if they are a VAT registered business themselves there is no reason why they wouldn't because they just claim it back on their next VAT return.
I made a classic school boy error of sailing tens of thousands of pounds past the VAT threshold and a year later when I finally got an accountant in to help me out it transpired I owed the VAT man a horrific sum. All invoices I had submitted past the point where I had passed the VAT threshold were ellibible for VAT payment.
The VAT man doesn't care about circumstances or where the money comes from. If you've invoiced it they will take their %.
I had to write to about ten companies and my ex-business partner (I had invoiced him for my half of our business) and ask them all kindly to pay additional VAT invoices on fees that had been settled up to 12 months previously.
Thankfully, every single one of them did, but they don't have to, so ask them nicely.