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VAT REGISTRATION AND INVOICES

  • Associate
  • Practice Licence
  • 10 posts
  • # 117322

This has probably been asked a thousand times - so my apologies

 

My client will be reaching the vat threshold in a day or so and one large invoice will take them over.  I have advised them to register today but am confused as to when HMRC will be expecting the vat to be calculated on sales invoices  and then paid over to HMRC.   I have read and re read the online notice, but am still thoroughly confused by the dates for contacting HMRC and the dates for registration and when they expect vat to be paid over to them.

 

If we contact HMRC today to say we are going over the VAT threshold in a week - when will be the registration date?  is it January 1st? and is that the date we start charging vat on invoices?  or do we start adding the vat on invoices now (though not identifying it as vat because we dont yet have a vat number) then re invoice with vat once we receive that vat number?  so from tomorrow should we expect to have to pay the vat element on all sales over to HMRC

 

I'm so confused.  Really do not want to upset the VAT man, but also dont want to be charging extra vat costs to customers if we dont need to yet

Tried phoning the icb help line but nobody seems to around today

Many thanks

  • Associate
  • Practice Licence
  • 40 posts
  • # 117328

Hi Woody,

 

Most of your questions are answered in the VAY overview on Gov.UK:

 

When you register, you’ll be sent a VAT registration certificate. This confirms:

  • your VAT number
  • when to submit your first VAT Return and payment
  • your ‘effective date of registration’ - this depends on the date you went over the threshold, or is the date you asked to register if it was voluntary

You cannot charge VAT on any invoices before you are registered and it might be worth looking at the VAT cash accounting scheme depending on your client's business.

 

Hope this helps a little.

 

Janet

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