Adding VAT

Newuser1987

So I am going to now have to register for VAT which is slightly frustrating as the majority of my clients are consumers. I am an architect and I already have a number of agreed contracts which are yet to be completed.

I am going to have to take the hit on these as they of course will not want to pay an extra 20% to the amount they have already agreed. However is it reasonable to ask any clients that are VAT registered companies to allow myself to add 20% instead of taking the hit myself?

TheCyclingProgrammer

However is it reasonable to ask any clients that are VAT registered companies to allow myself to add 20% instead of taking the hit myself?

Yes. As long as they aren't on the flat-rate scheme or make only exempt supplies, they can't really have any valid objections to paying the additional VAT as they will recover it through their VAT return. They might grumble if their cashflow is really tight, but generally it shouldn't be a problem. Give them some warning now though.

Newuser1987

Ah my accountant has just responded to me. I should have given more details but I only registered as a limited company on 9th March 2018. He has said that the VAT threshold has started from my date of registration and not any previous income as a sole trader!

Only need to retract one email from a client!!