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  • FIRST POST
    • robbiedodds22
    • By robbiedodds22 13th Apr 17, 1:01 PM
    • 3Posts
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    robbiedodds22
    VAT Payments
    • #1
    • 13th Apr 17, 1:01 PM
    VAT Payments 13th Apr 17 at 1:01 PM
    hello,


    I would like to get some clarity on a matter i have.


    I have deregistered from VAT and recieved my certificate of conformation. I have sent my certificate to the company i am working for and have recieved recipt of it being recieved. They assured me it would reflect in my next wage.


    As time has gone by i have now noticed they have paid me 20% more on my gross weekly amount which i have used and spent.


    Where do i stand now with this?


    Regards
Page 1
    • paddyrg
    • By paddyrg 13th Apr 17, 2:59 PM
    • 12,867 Posts
    • 10,956 Thanks
    paddyrg
    • #2
    • 13th Apr 17, 2:59 PM
    • #2
    • 13th Apr 17, 2:59 PM
    Tell them, arrange to get the money back to them.
    • eggha
    • By eggha 13th Apr 17, 4:47 PM
    • 220 Posts
    • 177 Thanks
    eggha
    • #3
    • 13th Apr 17, 4:47 PM
    • #3
    • 13th Apr 17, 4:47 PM
    why are they paying you a "wage" if you were previously a VAT registered separate entity?

    do you invoice them, if so they should not have overpaid and you owe them a refund, as your invoice would obviously not have included VAT

    if you do not invoice them and they simply pay you a set amount every month then there is more needs looking at in your situation than a bit of VAT, which you owe them nonetheless - unless you have genuinely increased your price by a coincidental 20%? but if they have paid VAT and not a price increase then you certainly cannot keep that money since, as you know, you cannot charge VAT when not registered, so would have to repay it.
    Last edited by eggha; 13-04-2017 at 4:57 PM.
    • comeandgo
    • By comeandgo 13th Apr 17, 4:52 PM
    • 1,522 Posts
    • 1,988 Thanks
    comeandgo
    • #4
    • 13th Apr 17, 4:52 PM
    • #4
    • 13th Apr 17, 4:52 PM
    If you were not invoicing them were they using authenticated receipts? If so the VAT would be seen on them. They would have to issue credit notes to cancel the original values then issue correct ones, without VAT. You are due the company the VAT back. I would imagine they would not pay you for future work but use it as set off.
    • martindow
    • By martindow 14th Apr 17, 10:23 AM
    • 6,914 Posts
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    martindow
    • #5
    • 14th Apr 17, 10:23 AM
    • #5
    • 14th Apr 17, 10:23 AM
    Does the payment relate to work done or invoiced by you before your deregistration date? This could lead to confusion regarding whether or not to add VAT. Are you certain that your invoice had no VAT number on it? It is one of the possible dangers of using a template invoice.
    • robbiedodds22
    • By robbiedodds22 18th Apr 17, 4:00 PM
    • 3 Posts
    • 0 Thanks
    robbiedodds22
    • #6
    • 18th Apr 17, 4:00 PM
    • #6
    • 18th Apr 17, 4:00 PM
    Hello Eveyone,


    I do not invoice the company i just fill out a timesheet & they pay me to my timesheet. I did send them my deregistration form and they said it would reflect in my wages and it hasnt as they are still paying me VAT.


    I have an email from them saying that it was all recieved. I have do produce an invoice but for my own benift which i have now taken off the VAT number.
    • Aquamania
    • By Aquamania 18th Apr 17, 4:13 PM
    • 1,904 Posts
    • 754 Thanks
    Aquamania
    • #7
    • 18th Apr 17, 4:13 PM
    • #7
    • 18th Apr 17, 4:13 PM
    Hello Eveyone,


    I do not invoice the company i just fill out a timesheet & they pay me to my timesheet. I did send them my deregistration form and they said it would reflect in my wages and it hasnt as they are still paying me VAT.


    I have an email from them saying that it was all recieved. I have do produce an invoice but for my own benift which i have now taken off the VAT number.
    Originally posted by robbiedodds22
    Before you de-registered for VAT, if you were not producing invoices then your customer must have had a self billing arrangement or possibly uses authenticated VAT receipts as alluded to earlier by comeandgo.

    Either way the VAT would be clearly shown.

    As you have now de-registered for VAT, you should not be paid VAT inclusive amounts.
    Contact the payer and explain the situation.
    • pelirocco
    • By pelirocco 18th Apr 17, 4:16 PM
    • 7,487 Posts
    • 8,291 Thanks
    pelirocco
    • #8
    • 18th Apr 17, 4:16 PM
    • #8
    • 18th Apr 17, 4:16 PM
    Hello Eveyone,


    I do not invoice the company i just fill out a timesheet & they pay me to my timesheet. I did send them my deregistration form and they said it would reflect in my wages and it hasnt as they are still paying me VAT.


    I have an email from them saying that it was all recieved. I have do produce an invoice but for my own benift which i have now taken off the VAT number.
    Originally posted by robbiedodds22
    Not are they only falling foul of VAT regulations , I suspect they are also falling foul of PAYE rules too, as of course if they are paying you vat, it implies you are self employed , and therefore cannot be paid 'wages'
    Do you have a limited company set up , from which you are supplying invoices?
    Vuja De - the feeling you'll be here later
    • robbiedodds22
    • By robbiedodds22 18th Apr 17, 6:22 PM
    • 3 Posts
    • 0 Thanks
    robbiedodds22
    • #9
    • 18th Apr 17, 6:22 PM
    • #9
    • 18th Apr 17, 6:22 PM
    Hi


    Yes i am trading as a Ltd Company yes. I am just going to contact them as its been a mistake on there behalf that needs rectifiying. I will just have to arrage for it to come out of my wages week by week
    • eggha
    • By eggha 19th Apr 17, 6:21 AM
    • 220 Posts
    • 177 Thanks
    eggha
    Hi


    Yes i am trading as a Ltd Company yes. I am just going to contact them as its been a mistake on there behalf that needs rectifiying. I will just have to arrage for it to come out of my wages week by week
    Originally posted by robbiedodds22
    You operate as a Ltd company therefore your customer cannot possibly be paying you "wages" as you are not their employee, you are an employee of your own company, and it is your company who charges its client for your work. The fact your client has paid against a time sheet rather than an invoice may explain why they have not taken any action over your changed VAT status since by definition VAT is not shown on a time sheet.

    If you start talking about "wages" in front of HMRC you will be clobbered for failure to operate a payroll system and to pay employers national insurance to HMRC.
    Last edited by eggha; Yesterday at 10:47 AM.
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