I have a client who does pundit work on the TV via his own Limited Company which is VAT registered. We invoiced a management/agent company his fee plus VAT and they in turn invoice the Television/media company. We have received the invoice fee - well all except the VAT element which it turns out the media company havent paid - they are not paying it despite chaser since March and have not given us a reason. Is this illegal? A reportable offence to HMRC? or just plain dumb?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
its illegal. They cannot just choose not to pay the VAT.
Your client still owes the outstanding VAT to HMRC regardless as to whether it has been paid by the client. But of course the VAT can be reclaimed against a bad debt which it seems that part of this debt is bad in that only part payment has been received.
Without the VAT payment the amount receieved is deemed VAT inclusive so your client has effectively given a 20% discount.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks Shaun, I thought it was. I really feel like ringing HMRC, despite hating HMRC! I feel like dobbing people in to the authorities to get my own back for the awful week Ive had. I just sent them an invoice for delayed payment on three invoices and will hound t hem until they relent!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
The issue with reporting them of course is that they will say that they have paid inclusive of VAT but they disagreed over the amount. They would not say that they have not paid the VAT.
From HMRC's perspective the problem is your clients not theirs. They just want their pound of flesh from the person who owes them the money and to them it is a no never mind that your client is unable to get the VAT from their client.
Whoever at HMRC came up with this system did a brilliant job of ensuring that the unpaid collectors burden the bulk of the risk for no reward.
Go on then, now go hound them into submission
Have a good weekend,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Cheers, I would but considering the chosen profession if I go out in daylight I would burst into flames.
Most light that I seem to get is the warm ambient glow of the computer monitors, lol
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hahaha. I am rebelling, I dont care about my piles anymore (no not THAT kind!!) and Im off to the garden with a book and a glass of something alcoholic, hic!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
