Can anyone help with a VAT query?

puddy

Im a self employed assessor (Im also employed by one employer as well) but dont charge VAT as I get set rates for particular work.

I sent in an invoice to a new employer who has paid this and added VAT to it?

I havent spoken to them yet as the order was sent by email/fax thing and Im not sure which dept it is, however is there a way to pay this VAT back?

Im very confused.

zygurat789

puddy wrote: »

Im a self employed assessor (Im also employed by one employer as well) but dont charge VAT as I get set rates for particular work.
Charging VAT will depend on Gross fees rendered

I sent in an invoice to a new employer who has paid this and added VAT to it?

I havent spoken to them yet as the order was sent by email/fax thing and Im not sure which dept it is, however is there a way to pay this VAT back?

A cheque?

Im very confused.

They have overpaid you plain and simple.

puddy

but i pay the council not hmrc yes?

antrobus

Is your 'new employer' doing what they call Self-Billing? That is where the customer (in your case the 'employer') is responsible for producing the VAT invoice. People who do that sometimes forget that they are supposed to check that the supplier (i.e. you) are actually registered for VAT before processing.

The only thing you can do is contact your 'employer' and point out that you are not registered for VAT, and that you have received the money in error. I'm sure that once they realise this they will ask you to repay the money and tell you how to do it.

antrobus

puddy wrote: »

but i pay the council not hmrc yes?

Oh it's a council is it?

Yes you repay them not HMRC. And don't repay them until they ask you to do so and give you specific instructions as to which account etc.

puddy

yes a Local Authority

so i phone them, tell them im not registered for VAT, and then just wait to be told what account to pay it into

im just worried i will get in trouble with the hmrc because i have received vat but not paid it to them

i dont know why its paid this way actually. this LA is actually one of my employers (as in im on a payroll), however this task i did was independent to my sessional work with them so i put an invoice in (as the fees i charged for this were different to the LA fees that i would get as a sessional)

now, in the past they have messed up almost every single expenses claim i have ever put in. i always have to check that its gone through to payroll, then someone loses it on the way, then they change for the forms for the sessional workers and no one is informed, etc etc etc

however, on a couple of occasions they have sent my expenses to 'accounts' instead of payroll by mistake. when that happened, accounts sent me a cheque, which i then had to return to get paid via payroll

so why they've paid it like this i dont know. i suppose it is because i had my own invoice for this, rather than a sessional fees claim form

antrobus

puddy wrote: »

yes a Local Authority

so i phone them, tell them im not registered for VAT, and then just wait to be told what account to pay it into

im just worried i will get in trouble with the hmrc because i have received vat but not paid it to them

That's basically it. And no, you won't get into trouble with HMRC.

And given the problems you've experienced in the past, you probably understand why its best to wait for specific instructions as regards the repayment. If you just send it to them, they won't know what it's for, and it'll get lost somewhere and so forth.

puddy

antrobus wrote: »

That's basically it. And no, you won't get into trouble with HMRC.

And given the problems you've experienced in the past, you probably understand why its best to wait for specific instructions as regards the repayment. If you just send it to them, they won't know what it's for, and it'll get lost somewhere and so forth.

that is an understatement

zygurat789

puddy wrote: »

yes a Local Authority

so i phone them, tell them im not registered for VAT, and then just wait to be told what account to pay it into

im just worried i will get in trouble with the hmrc because i have received vat but not paid it to them

i dont know why its paid this way actually. this LA is actually one of my employers (as in im on a payroll), however this task i did was independent to my sessional work with them so i put an invoice in (as the fees i charged for this were different to the LA fees that i would get as a sessional)

now, in the past they have messed up almost every single expenses claim i have ever put in. i always have to check that its gone through to payroll, then someone loses it on the way, then they change for the forms for the sessional workers and no one is informed, etc etc etc

however, on a couple of occasions they have sent my expenses to 'accounts' instead of payroll by mistake. when that happened, accounts sent me a cheque, which i then had to return to get paid via payroll

so why they've paid it like this i dont know. i suppose it is because i had my own invoice for this, rather than a sessional fees claim form

Don't worry, you have NOT received VAT.
So long as you have no VAT registration HMRC will look at you for VAT unless your invoicing is above the threshold approx £60K. Income tax is another matter, if you have not declared this income and been taxed on it then be afraid.

puddy

zygurat789 wrote: »

Income tax is another matter, if you have not declared this income and been taxed on it then be afraid.

i am registered self employed and complete a tax return each year thank you very much!! i have received this money (well havent received it yet, it will pay into my account this week, i simply received the purchase order email) this year, so will declare it on my tax return for the end of this tax year

i presume you meant above HMRC will not look at me for vat unless i earn over 60k? which i dont

zygurat789

puddy wrote: »

i am registered self employed and complete a tax return each year thank you very much!! i have received this money (well havent received it yet, it will pay into my account this week, i simply received the purchase order email) this year, so will declare it on my tax return for the end of this tax year

i presume you meant above HMRC will not look at me for vat unless i earn over 60k? which i dont

No. I meant your invoicing was over approx £60K. Earnings are net profit.