Hi, My Ltd Company is in the process of being VAT reg?

I Need to invoice, what should I do regarding the VAT, I cant add it yet as, Kind advise please

When I am VAT Reg I understand that I can add it, but as I am not yet can I charge previous clients who I have invoiced already for VAT.
I know this might soud silly to some og you but I am new to this. Thankyou

HMR&C's website is very helpful. They give the following information for those waiting for their VAT registration to be completed:


You should be aware that you are required to account for and pay any VAT due from the date you are liable to be registered, not just from the date you apply for registration or from when you receive your certificate.

Although you cannot charge VAT before you are registered or show VAT as a separate item on any invoices you issue, you can change your prices to include VAT. You can do this from the date you should be registered and before you receive your Certificate of Registration. You will need to explain to your customers that you will be sending them VAT invoices later. Once you have your registration number you should send the invoices, showing VAT, within thirty days. If you have asked for voluntary registration you will need to start accounting for VAT from the registration date you asked for on your application form, as long as you actually made supplies/provided services from that date.


Hope this helps. By the way, if your turnover is likely to be under 拢150,000 in your first year of trading, the flat rate VAT scheme is brilliant - you don't need to keep detailed VAT records and you might actually save money. More info at:

http://www.hmrc.gov.uk/manuals/bimmanual...

If you cannot charge VAT as yet then leave it until you are VAT registered, then collect it from customers and give it to HMRC every quarter.

Hello,

(ANS) I set up and ran my own limited company in order to work as a freelance IT consultant which is a very common scenario in the computer industry.

However, I found out that unless your turn over & profit per annum exceeds approx 拢50K then its just not worth becoming VAT registered.

**YES! you can voluntarily register for VAT but frankly its an utter hassle and a waste of precious time. Because you will have to submit VAT reports every x3 months which just adds to the sheer burden of your paper work & record keeping. Frankly there is No! benefit to becoming VAT registered unless you have too or are forced to.

**YES! that means you cannot charge customers VAT on your goods or services.

**YES! you & your company are spending out on the VAT but not able to reclaim it but thats just one of those things a small business has to suffer and accept.

**No! you therefore cannot retrospectively charge VAT to past customers or clients, oh!! by the way hears my bill for the VAT I forgot to charge you for.

Hope thats useful?

Kind Regards Ivan

(computer veteran, MCSE trained)

You cannot charge VAT unless you are registered. If you have any doubts ring the VAT help line.