VAT payment

Nicolae86

I have been working for someone as a self-employed person for a year but I have not been paid VAT for the services provided. I am VAT registered and have been since I started working for this person. At first he told me that he does not pay VAT to me. For the payments he made to me for the jobs offered, I did not make an invoice but the company collected VAT for the jobs I offered, the company being VAT registered. So he collects VAT but does not pay. My question is whether it is still possible to recover the VAT that he must give me.

FlorayG

Why did you not invoice him? Without that you can't prove that you didn't include VAT in the price you charged. You might have paid VAT on what he gave you but he can argue that your charges were all inclusive

DullGreyGuy

Nicolae86 said:

I have been working for someone as a self-employed person for a year but I have not been paid VAT for the services provided. I am VAT registered and have been since I started working for this person. At first he told me that he does not pay VAT to me. For the payments he made to me for the jobs offered, I did not make an invoice but the company collected VAT for the jobs I offered, the company being VAT registered. So he collects VAT but does not pay. My question is whether it is still possible to recover the VAT that he must give me.

So, you've done £100,000 of work, you've in principle invoiced him £120,000, they've paid you £100,000 and so you've taken the £20,000 VAT out of your own takings so on a net basis have received £80,000?

Sounds like you are a subcontractor? So whilst you are charging them £100,000 net they are charging their client £150,000 + VAT? 

Presumably you are over the VAT threshold or was it a voluntary registration? 

I assume you arent in construction or something else which a scheme for labour only subcontractors?

penners324

How is he paying you without receiving a vat invoice?

Send the client correct invoices with vat on them then a statement showing the underpayment.

Are you doing MTD?

Grumpy_chap

Nicolae86 said:

I have been working for someone as a self-employed person for a year but I have not been paid VAT for the services provided. I am VAT registered and have been since I started working for this person. At first he told me that he does not pay VAT to me. For the payments he made to me for the jobs offered, I did not make an invoice but the company collected VAT for the jobs I offered, the company being VAT registered. So he collects VAT but does not pay. My question is whether it is still possible to recover the VAT that he must give me.

On what basis is the contract set out for the work you do?  Is it a proper supplier contract, not any kind of employment contract?
Are the goods / services you provide within a class that is subject to VAT?  (not exempt / zero rated).
Why have you not issued invoices to the company / person you are working for?

If you do £100 of work, you should be invoicing £100 + VAT = £120 (usually).
If you receive a payment of £100, that is really £83.33 + VAT (usually).
You are VAT-registered so, even if the customer does not require them, you should prepare record invoices and maintain accounting records on that basis.