Vat registered? What's today?

[armyash]

Was today the deadline for submitting something vat related? I'm not vat registered so don't know.

This maintenance firm that I've been doing some subbie work for said they were supposed to submit their vat whatever it is today but because I haven't handed in my receipts for materials I've used, they've had, or are due a £600 fine.

I'll be honest they have been asking for them for approx 2 weeks but I haven't had a chance to sort them out. Some stuff I haven't got receipts for because it's stuff I've had on the van for ages so would need to write out by hand. I've got my own job to do as an employee, my own private jobs to manage and them on top.

I think it's a bit strange that they would have held off submitting something just because of my receipts and risk a 600 fine. I doubt there's £600 worth of vat to claim back so why not just submit whatever it is anyway? Doesn't add up.

Is that normal when subbing to a firm to have to give them receipts - I've paid for the materials. I've given prices for jobs, jobs been agreed and I've got in with it.

I haven't got anything to hide it's simply a matter of time.

 

[Scott_D]

Sounds like BS
Put it into next years books

Did they pay you the money you were owed?

 

[armyash]

Sounds like BS
Put it into next years books

Did they pay you the money you were owed?

I've been getting paid fine.

Thats what I said put the receipts through next time.

She said its something that has to submitted quarterly. I think they want to know what I'm adding on to materials

 

[mfgs]

The last quarterly return was due in on 6th March.
if you aren't VAT registered though, then your invoices shouldn't matter as there wont be a VAT element on them.

 

[armyash]

The last quarterly return was due in on 6th March.
if you aren't VAT registered though, then your invoices shouldn't matter as there wont be a VAT element on them.

They want to claim back the vat on the materials I've bought which is why they want my receipts.
Is that allowed?

 

[armyash]

The last quarterly return was due in on 6th March.
if you aren't VAT registered though, then your invoices shouldn't matter as there wont be a VAT element on them.

Surely if something was due to be submitted they would have submitted it regardless of my receipts to avoid the fine and deal with my receipts next quarter.

 

[mfgs]

They want to claim back the vat on the materials I've bought which is why they want my receipts.
Is that allowed?

Not sure to be honest. If its included in your invoice then they shouldn't be claiming it as its being supplied by you. So you would have to be VAT registered and have it on your invoice. Someone more clued up on it than me will hopefully make it clearer for you.

 

[ShaunCorbs]

No as they didn’t buy them / not in there name say no

 

[Welder]

Agree with Town. If you invoice them for the 'job' then its fraudulent for them to claim VAT on your bill. Plus, you need those receipts for your records & warranty issues

 

[king of pipes]

Bull s--- to me you bought the materials did the work for a price which you both agreed on , they paid you that price less the 20% paid to CIS ? and for the materials you spied yes , you are not vat registered so cannot claim vat back on the materials and they didn't supply the materials they used your credit to get the work done so cannot claim it either . Kop

 

[Harvest Fields]

I know of companies that do it. But I would say no.

 

[armyash]

Bull s--- to me you bought the materials did the work for a price which you both agreed on , they paid you that price less the 20% paid to CIS ? and for the materials you spied yes , you are not vat registered so cannot claim vat back on the materials and they didn't supply the materials they used your credit to get the work done so cannot claim it either . Kop

I will account for it when I do my self assessment. They do not deduct anything from me.

I go to job. Give price. They say yes. I do the job. They pay me price quoted.

 

[Last Plumber]

This is really down to you and how you run your own business.
In our case we purchase materials, add a mark up and then those materials - along with the Labour element - are invoiced to the customer with the VAT added on top.
Our customers do not get to see (or ask) to see the invoices and receipts we are issued.
If you are subcontracting and also require being reimbursed with money for the goods you provide, then a VAT registered company selling those goods on, would need the receipts in on time to claim the the VAT back in the right VAT quarter.
Obviously I don't know what amount you are talking about but if they invoice the customer plus VAT yet don't have a receipt to claim back on then the full VAT amount of invoiced goods would have to be paid over to the revenue. That way they could lose out, unless they can claim it in the next quarter. Even if they can, they would be that difference down until the quarter is over.
Does that make sense?

 

[armyash]

I know of companies that do it. But I would say no.

I'm just going to write up my receipts tomo

This is really down to you and how you run your own business.
In our case we purchase materials, add a mark up and then those materials - along with the Labour element - are invoiced to the customer with the VAT added on top.
Our customers do not get to see (or ask) to see the invoices and receipts we are issued.
If you are subcontracting and also require being reimbursed with money for the goods you provide, then a VAT registered company selling those goods on, would need the receipts in on time to claim the the VAT back in the right VAT quarter.
Obviously I don't know what amount you are talking about but if they invoice the customer plus VAT yet don't have a receipt to claim back on then the full VAT amount of invoiced goods would have to be paid over to the revenue. That way they could lose out, unless they can claim it in the next quarter. Even if they can, they would be that difference down until the quarter is over.
Does that make sense?

Yes that makes sense.

I've been doing work for them since before Xmas but they only started asking to see receipts 2-3 weeks ago which makes it seem a bit strange. If they had said from the off then I could have split labour and materials on the invoice for them. Now I have to go back through all my jobs.

If this was a domestic I would do exactly the same. Get price for materials +10-20%, work out labour there's my price total take it or leave it.

 

[Last Plumber]

If you are sub contracting for them, they are supposed to take your tax off you and pay it to the revenue. They can only take it from the labour element.
That was the case until recently anyway. I have not checked for a couple of years but I can't see it having changed.

 

[king of pipes]

This does not sound right to me I have been sub contracting to a building company they set me up on their accounting system via my unique tax reference number and national insurance number , I invoice them my labour figure and seperate materials costing 20% is deducted from the Labour figure and paid to the taxman through CIS I get issued a voucher to prove they have paid over that amount these get passed on to my accountant , the vat is not claimed back as I am not registered and stay under the threshold . Cheers kop

 

[armyash]

It started off the odd phone call out the blue. Can I do this job 'yes, send info'.

Job done, invoice sent.

It became more and more and they said now as I'm doing more an o go up the office and get an Id card made up. Starting to feel like an employee to be honest.

They have said 'you've done alright with us so far' money wise they mean.

Yesterday I got a payment for just over 2k for some jobs. One of them was a boiler change supply and fit. They go you had a good payment today.

It's not a gift, they a are paying me for work done so why say anything.

It's 14 days payment terms which I admit is good but they are paying me for work completed.

 

[king of pipes]

If I was you I would get some advice from your accountant definitely not right mate they are making good money off you so its a 2 way street . Good luck with it kop

 

[Welder]

100% with KOP there. You are effectively being backmailed into (what I feel is) fraudulant activity. Just remember. If you participate YOU are as guilty as they in the eyes of the law. YOU have ZERO excuse I'm afraid.

Get formal advice NOW.

 

[Harvest Fields]

100% with KOP there. You are effectively being backmailed into (what I feel is) fraudulant activity. Just remember. If you participate YOU are as guilty as they in the eyes of the law. YOU have ZERO excuse I'm afraid.

Get formal advice NOW.

If you want to keep them sweet and they want to claim the vat back. I would let them buy the parts.

 

[Welder]

If you want to keep them sweet and they want to claim the vat back. I would let them buy the parts.

Just remember tho, they take ALL responsibility for matls related issues.

 

[armyash]

If you want to keep them sweet and they want to claim the vat back. I would let them buy the parts.

That sounds like the best way to go about things. Only thing is they would want me collecting stuff from their office which is a 25minute drive then the job could be 40 minutes back the other way.

I will speak to them, I don't mind if they book the jobs in a block but it's not worth me going back and forth.

I'll sort receipts out for work done up to now then they can start getting materials.

 

[Harvest Fields]

That sounds like the best way to go about things. Only thing is they would want me collecting stuff from their office which is a 25minute drive then the job could be 40 minutes back the other way.

I will speak to them, I don't mind if they book the jobs in a block but it's not worth me going back and forth.

I'll sort receipts out for work done up to now then they can start getting materials.

Pick up Straight from suppliers.

 

[armyash]

And Im mot being lazy not wanting to collect parts from the office so I hope don't come across like that but if I'm being given jobs here and there it doesn't make sense. If I'm changing bath taps it could be an hour on top.

I can't quite work out which way it's going to go yet. I'm going to tell them what I'm up to work wise and offer them set days I can work for them and other times do my own stuff. I will be flexible for emergencies. Will speak to hmrc Monday if it's OK I'll send them all material receipts from now on if not then I won't.