newly vat registered
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- 15 Responses
- leewilson78
hi all,
should probably speak to my accountant, but basically, just got VAT registered, wondering if I add VAT on top of what I estimated to clients, or deduct VAT from what I estimated, so the final figure is the same.
- moth0
Add it, unless you're running a pound store.
- Yolo0
its always worth saying "+VAT" on your quote.
especially with smaller clients
- rafalski0
You are running one moth, aren't you?
- MSL0
Same as Yolo - we always put a '+VAT' on all our quotes.
- leewilson780
well, this quote was before I was VAT registered, its for monthly site management, we quoted a fee, but didn't mention VAT originally, would I be losing out if I now deduct what we quoted from the fee?
- yes as you have to give the VAT back to the government... it is not yours to keep.fodcj
- MSL0
I'm pretty sure you can only charge VAT from the point of becoming officially VAT registered, if it is a legacy quote - then no, you can't charge it.
You'll probably loose a few quid in your Tax return, but nothing too big. Have a word with your accountant if in doubt.
- stewart0
...and consult your accountant.
- leewilson780
I'm more concerned about the client really. I am VAT registered from the end of last month. I did the quote a week before then, the client came back today and said, yes, lets go ahead with the quote.
Just not sure if I would be taking the piss if I added VAT now.
- leewilson780
its with a council, would they mind, i.e. whats the deal with VAT and local government....
man I know nothing.
- 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.
- Yolo0
if its new invoices you have to add vat on. can't invoice without it now.
- leewilson780
Horp, cheers for the insight, my accountant did explain it but I fell asleep, now I know how important it is.
- Yolo0
a council? don't worry then, just add it on
- mistermik0
If you want VAT registered and yet you have no idea why or what not to do with this VAT then I feel this tale will not have an 'and happily ever after' ending
- ximeraLabs0
What Yolo and MSL say. Always quote price +VAT (i.e. £1000 +15% VAT= £1150)