Retrospective VAT invoice from contractor

[stinkyspanner]

One of my contractors has just sent me an email explaining that as he's gone over the VAT threshold he needs to charge me Vat retrospectively on an invoice from last month which I've already paid without Vat. I'm Vat registered so I'm not too bothered, it's still in an 'open' Vat quarter so I don't think it's a problem, does it sound like the usual way to go about it? (other than the fact he should have realised at the time..)

[Neddy Sea Goon]

Exactly the way to go about it.

Just get him to raise a separate invoice for the VAT element.

It will get a bit.messy crediting the original invoice off and re invoicing , particularly as you've already paid it

[Countdown]

It's th right way to go about it (although you could refuse to pay if you were so inclined...imagine running a retail outlet and the realising you've gone over the threshold. there's now ay your customers would expect to pay you an additional 20%).

In terms of processing it - the AP systems I've worked with would prefer a credit note for the original invoice and simultaneously processing the new VAT-rated invoice. Processing a VAT-only invoice can cause complications - the AP system usually says "hang on, where's the nett cost?".

[VeeReihenmotor6]

I'm with countdown (I'm a FC for an organisation too) and would want to see a credit note and re-invoice with VAT for clear audit trail and also if you were in a different VAT period (you're not, I know) this approach makes for a cleaner working paper on the VAT return. Plus my systems are set up in a way to not allow this to happen so if it were us you'd have to take my approach.

edit to add - make sure the new invoice has a VAT number - could be an easy way to extract and extra 20% out of you if not truly registered.

Edited by VeeReihenmotor6 on Monday 17th October 08:50

[Eric Mc]

stinkyspanner said:

One of my contractors has just sent me an email explaining that as he's gone over the VAT threshold he needs to charge me Vat retrospectively on an invoice from last month which I've already paid without Vat. I'm Vat registered so I'm not too bothered, it's still in an 'open' Vat quarter so I don't think it's a problem, does it sound like the usual way to go about it? (other than the fact he should have realised at the time..)

Is your business VAT registered?

[Countdown]

Eric Mc said:

stinkyspanner said:

One of my contractors has just sent me an email explaining that as he's gone over the VAT threshold he needs to charge me Vat retrospectively on an invoice from last month which I've already paid without Vat. I'm Vat registered so I'm not too bothered, it's still in an 'open' Vat quarter so I don't think it's a problem, does it sound like the usual way to go about it? (other than the fact he should have realised at the time..)

Is your business VAT registered?

[stinkyspanner]

Yes my company is Vat registered, and I don't think he's on the fiddle-he's provided a Vat number and he's a bit of a old stiff anyway.