Utility Warehouse and VAT reclaim

Swindonsimon

I am a small business who used Utility Warehouse for electricity and finished with them 4 years ago,
I have recently received a £2,000 bill for the incorrect VAT they charged me when I was their customer. They are saying that HMRC have requested that they collect their money on their behalf.
I have contacted HMRC who have told me that this is a civil matter between UW and myself.
Can they pursue VAT after this period even though they have apparently wrongly charged me?
Do I have a case of misselling as I believe they did this to keep the cost to me down at the time?
Surely the matter of VAT is between them and HMRC?

Robin9

There are only two rates of VAT - the standard 20% which is the default that businesses pay. ; 5% for domestic.

A lower rate of 5% which has to be specifically claimed is for charities.

Have you a copy of your bill ?

dogshome

If your business is still VAT registered it's just money on a round-about.

You get a bill for unpaid VAT, you pay it and declare it on your next VAT return, and then that sum is then deducted from the VAT you have collected on your invoicing.

If it was me, just to make sure it's all Kosher I'd declare it on my next return, and only pay UW after HMRC had accepted the figures

spiro

Robin9 wrote: »

There are only two rates of VAT - the standard 20% which is the default that businesses pay. ; 5% for domestic.

A lower rate of 5% which has to be specifically claimed is for charities.

Have you a copy of your bill ?

Plus 5% CCL for businesses.

badmemory

I would be inclined to ask for corrected bills. You could face difficulty trying to reclaim VAT if you have no real paperwork to prove it. So credit notes to cancel old bills with incorrect VAT & invoices to reflect the correct VAT. This should just reduce your next VAT bill but when someone has messed up it is better to have as much paperwork as you can get. Especially if it is going to make your next VAT declaration look different from the usual, which it will unless your turnover is large.


You should also check that your subsequent suppliers have not done the same.

Quentin

You cannot reclaim VAT (unless you use a very little energy)

badmemory

Swindonsimon is a business user (must be or wouldn't be being charged 20% VAT) therefore he can reclaim the VAT the same as for goods purchased for resale. Pays to HMRC VAT on sales less VAT on purchases.

Quentin

You are presuming the OP is VAT registered


I am assuming he isn't - because if he were he wouldn't be bothered about what level of VAT he paid!

badmemory

That much underpaid VAT implies a fuel bill of over £13k (excl VAT). It would still need paying possibly long before it could be reclaimed. So I did assume VAT registered. But we both know what assume did don't we?


It is always possible that the OP saw this bill & went into OMG mode.