Hi I am doing some work for a registered charity, not VAT registered. We rent out office space for companies and both the finance officer and the manager keep telling clients the price is plus VAT. Surely they shouldn't say plus VAT they should just give the price. Obviosly I am not suggesting they charge less just give the price but it does not contain VAT. I notice there is no VAT element on any of the invoices though ,thank God ,but surely I should tell them not to quote plus VAT? Secondly a teacher friend of mine has been asked to do private lessons. They do not fill in a tax return at the moment as they are employed, do they have to contact the revenue to inform them of the extra income or just apply to fill in a tax return near the end of the year? Regards, Tony.
1. A company whether a charity or not cannot charge VAT if they are not VAT registered. The customer cannot claim VAT back without an invoice which has the VAT registration number of the supplier on it and VAT is itemised.
2. Someone employed who does 'other work' needs to do this either through the books for the person employing them or as self-employed. If the former they need to sign a P46 stating that this is not their only job. If the latter they need to inform HMRC that they are self-employed which will generate a requirement for them to complete an annual self-assessment declaring both the employed and self-employed income.
Thank you I was sure they shouldn't even mention adding VAT if they are not registered. As I say, they have not added it on any invoices so there is no problem beyond that. New to job and although I voiced my opinion I didn't wish to put my view any stronger till I was 100% sure. Regards,
