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UK General Cleaning Forum => General Cleaning Forum => Topic started by: Scotbrite on March 08, 2011, 05:52:17 pm

Title: Adding VAT
Post by: Scotbrite on March 08, 2011, 05:52:17 pm

Hi Guys,
I dont normally sub out work but had to recently. I have got an invoice from the subbie with vat added, do i invoice the client ( with my cut added on) and then add on VAT again ?? I realise this may sound like a silly question but it means that vat has been added twice on the end cost. Any info much appreciated,
Cheers,
Ron

Title: Re: Adding VAT
Post by: AshWhite on March 08, 2011, 06:28:39 pm

I think you would work it the following way:
If subbie bills you £10+VAT and you want to add an extra £5, then it would be
You charge £15+VAT, and claim the VAT back from when you paid the subbie. 

VAT Can only be charged once.

Regards,

Ashley

Title: Re: Adding VAT
Post by: absolutecleaning on March 08, 2011, 08:50:20 pm

If you are registered for VAT then you MUST charge VAT on all your invoices for goods or services which are subject to VAT.

Title: Re: Adding VAT
Post by: BDCS on March 08, 2011, 09:13:14 pm

What difference does it make - you've got your invoice and the customer gets theirs. You pay the difference in Vat

Title: Re: Adding VAT
Post by: Pristine Clean on March 09, 2011, 07:45:41 am

Quote from: Scotbrite on March 08, 2011, 05:52:17 pm

Hi Guys,
I dont normally sub out work but had to recently. I have got an invoice from the subbie with vat added, do i invoice the client ( with my cut added on) and then add on VAT again ?? I realise this may sound like a silly question but it means that vat has been added twice on the end cost. Any info much appreciated,
Cheers,
Ron

Are you VAT registered yourself?

If not, you treat the invoice as a whole number. For example.

if I invoice you for £120.00 pounds there is £20 for VAT as we are VAT registered. So all our services are 20% more.

So to make your £5.00 profit you would invoice the client £125.00 NO VAT shown on invoice as you are not VAT registered.(I assume you are not vat reg)

If you are not VAT registered you cannot show VAT on an invoice that you produce

If that was us where we are VAT registered it would look like the following

£125.00 + VAT

I hope that helps
Dave

Title: Re: Adding VAT
Post by: Scotbrite on March 11, 2011, 09:31:19 pm

Thanks for the replies, phoned HMRC, turns out u can do it either way as long as u note how it was done,
Cheers,
Ron

Title: Re: Adding VAT
Post by: Andy Foster on March 12, 2011, 10:19:36 am

You cannot charge VAT unless you are VAT registered.
It is illegal.

Title: Re: Adding VAT
Post by: Scotbrite on March 12, 2011, 12:46:01 pm

I know Andy, thanks. I am vat registered. U can work it out either way as long as you record how its done