agency screwing me on VAT

[filthy1980]

just realised i'm being screwed over by my agency on VAT,

i set my 1st ltd up on this contract, i'm 8 months in secured an extension at the end of jan,

said agency run a self bill invoice system inclusive of VAT, but it has only just dawned on me that i'll be the one paying the VAT and the agency are claiming the VAT from the client co but not having to pay it to me (my ltd)

obviously realise that this is my fook up, but is there anything i can do to lessen / reduce the impact other then:

re-negotiate contract, read the contract properly etc etc

(

[cojak]

When negotiating all contracts old and new always state £xxx excluding VAT.

Not much you can do about it until extension time but it will only happen to you once...

PS. You are not being screwed by the agent on this, as the service provider it's your responsibility, it's not their fault you cocked it up.

[filthy1980]

When negotiating all contracts old and new always state £xxx excluding VAT.

Not much you can do about it until extension time but it will only happen to you once...

PS. You are not being screwed by the agent on this, as the service provider it's your responsibility, it's not their fault you cocked it up.

i feel screwed that's what's important, you live and learn

cheers for the feedback

[RobertStell]

VAT and other miscreants

So agency bill end client and add VAT ...for example £100+vat=£120

and they're only paying you £100??

am I reading this correctly?

Robert

just realised i'm being screwed over by my agency on VAT,

i set my 1st ltd up on this contract, i'm 8 months in secured an extension at the end of jan,

said agency run a self bill invoice system inclusive of VAT, but it has only just dawned on me that i'll be the one paying the VAT and the agency are claiming the VAT from the client co but not having to pay it to me (my ltd)

obviously realise that this is my fook up, but is there anything i can do to lessen / reduce the impact other then:

re-negotiate contract, read the contract properly etc etc

(

[CheeseSlice]

just realised i'm being screwed over by my agency on VAT,

i set my 1st ltd up on this contract, i'm 8 months in secured an extension at the end of jan,

said agency run a self bill invoice system inclusive of VAT, but it has only just dawned on me that i'll be the one paying the VAT and the agency are claiming the VAT from the client co but not having to pay it to me (my ltd)

obviously realise that this is my fook up, but is there anything i can do to lessen / reduce the impact other then:

re-negotiate contract, read the contract properly etc etc

(

Hang on, I'm confused here.

Are you VAT registered?
Does the self-billing invoice state a VAT amount?
Does your contract state that the agent and the contractor 'agree' to use self-billing?

[VectraMan]

WHS.

If you're VAT registered, you have to charge VAT. If the agency haven't been paying it, tell them forthwith and they have no choice but to pay up the missing VAT.

If you're not VAT registered, you don't charge VAT, just the nett amount. What goes on between client and agent is nothing to do with you.

So either way you're not missing out. Unless the contract did specify the amount including VAT and you took it to mean the amount not including VAT, but that's not the norm.

[MarillionFan]

WHS.

If you're VAT registered, you have to charge VAT. If the agency haven't been paying it, tell them forthwith and they have no choice but to pay up the missing VAT.

If you're not VAT registered, you don't charge VAT, just the nett amount. What goes on between client and agent is nothing to do with you.

So either way you're not missing out. Unless the contract did specify the amount including VAT and you took it to mean the amount not including VAT, but that's not the norm.

WHS. Are you VAT registered?

You mention 8 months, if you were registered you would be on your third return by now.

If you have only recently registered or need to then you charge from that date, the agency has to pay vat and then you have to pay Hmrc.

[filthy1980]

WHS. Are you VAT registered?

You mention 8 months, if you were registered you would be on your third return by now.

If you have only recently registered or need to then you charge from that date, the agency has to pay vat and then you have to pay Hmrc.

only just registered as was below the threshold (and still will be for a few months),

invoices state "THE VAT SHOWN IS YOUR OUTPUT TAX DUE TO HM REVENUE AND CUSTOMS" but no VAT or deductions are shown

will speak to the accountant tomorrow and find out where i stand

[Wanderer]

only just registered

Sounds like you might be misunderstanding how the VAT system works.

[BolshieBastard]

only just registered as was below the threshold (and still will be for a few months),

invoices state "THE VAT SHOWN IS YOUR OUTPUT TAX DUE TO HM REVENUE AND CUSTOMS" but no VAT or deductions are shown

will speak to the accountant tomorrow and find out where i stand

There wont be any VAT on your self bill as you havent yet sent prove of VAT registration to the agent. And even if you have, they will only apply VAT once they have updated their records and apply it to your date of registration.

Your self bill will nearly always say "THE VAT SHOWN IS YOUR OUTPUT TAX DUE TO HM REVENUE AND CUSTOMS" even when you are not VAT registered. Its just a template.