VAT for Self Employed

S

surfjuggler

Guest
Hi all,
I have a question about VAT. I may have made a big boo-boo and I hope someone can clarify it for me. I am a small self-employed earner. I am aware of the 25,500 VAT threshold but my problem is I agreed rates with people and now that I am gonna go over the threshold from other invoices, I have to go back to them and say ‘I know we agreed this price months ago but since I have gone over the threshold I have to charge you my daily rate + VAT of 21% for the work I have already done for you but not billed you for’
Basically its work I have done, but not invoiced yet as its not 100% complete.

Does the VAT man allow for these transitional invoices that cause me to straddle the 25,500 threshold?

Issuing the three invoices I have in mind will being me from 23k invoiced to 40k.
Any advice?
Thanks
PS The clients are VAT registered if that helps!
 
I don't really understand your question. If your annual turnover exceeds or is likely to exceed the registration threshold (increased marginally from 25.5k in the last Budget) then you must register for VAT. If your clients are vat-registered this will not matter a whit to them as presumably they can readily claim back the VAT paid to you?

If you are confused about VAT or any aspect of self-employment, get professional accountancy advice.
 
ubiquitous said:
If your clients are vat-registered this will not matter a whit to them as presumably they can readily claim back the VAT paid to you?
Click to expand...

Other than cashflow perhaps, but if things are that tight for them cashflow wise VAT might be the least of your worries.
 
Yeah,

Once your clients see a detailed invoice showing VAT seperately, where the net cost to them is the same as it would be before you registered for VAT, they shouldn't care apart from the situation dam099 describes.
 
Cash flow shouldnt be a problem.
What may be is that one job is up to a max of 6000EUR for procurement reasons. They have agreeed to pay me this. But now as I will have to put VAT on the bill it will increase it and could cause problems.
Anyway its good to hear that it may not be a problem for the others. Thanks
 
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