The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> VAT Registered not charging VAT
Post Info TOPIC: VAT Registered not charging VAT
MSB


Member

Status: Offline
Posts: 6
Date:
VAT Registered not charging VAT
Permalink  

Hi

 

I have just gained a new client who has been doing their invoicing themselves.  They became VAT registered in March.

Any contracts they raise are invoiced monthly up to  twelve months.

Contracts that have been raised before they became VAT registered they have invoiced without VAT and continued to once they registered.

Any contracts they have gained after becoming VAT registered they have Charged VAT.

Question is:

1.  Contracts raised before registering for VAT and still being invoiced monthly they should be adding VAT?

2.  If they had raised a contract before becoming registered, with Invoice for whole amount and agreed monthly installments would they still have to charge VAT?

 

Hope this makes sense.

Thanks for Help

 



__________________
Leger


Master Book-keeper

Status: Offline
Posts: 3904
Date:
Permalink  

MSB wrote:

Question is:

1.  Contracts raised before registering for VAT and still being invoiced monthly they should be adding VAT?

2.  If they had raised a contract before becoming registered, with Invoice for whole amount and agreed monthly installments would they still have to charge VAT?

Invoices issued after becoming VAT registered should be subject to VAT, regardless of when the contract began.   

Question 2 is a litttle more tricky, as it will depend on the amount. If you know that by issuing the invoice you will go over the VAT threshold then you must register for VAT but the VAT registration will commence from the start of that month

eg.  On 28th February Fred's turnover for the previous 11 months is 70k. He has a big invoice to issue in March of £20k, which will take him over the registration threshold. He has to register for VAT by the end of March but his VAT registration date will be 1st March, as opposed to 1st May if he had ordinarily gone over the threshold in March.



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
MSB


Member

Status: Offline
Posts: 6
Date:
Permalink  

Thank you



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> VAT Registered not charging VAT
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About