Non VAT registered Ltd company paid VAT

[Perbinder]

Hi
New registered ltd company
I have just been paid by a company with VAT included despite my invoice not including VAT. The problem it is a government organization and it is very difficult to get cheques resent.

If I put the cheque in do I have to pay the VAT to HMRC?

 

[Mr D]

Is the total paid the amount you charged? Or are they paying 20% over the invoice amount?

 

[Perbinder]

Is the total paid the amount you charged? Or are they paying 20% over the invoice amount?

Hi
They have paid amount on invoice plus vat
Thanks

 

[Mr D]

Hi
They have paid amount on invoice plus vat
Thanks

Speak to their finance people and explain they have overpaid by so much.

 

[Perbinder]

It’s a government agency and it’s a nightmare to get reissued.

 

[Mr D]

It’s a government agency and it’s a nightmare to get reissued.

So you ring them then send them a cheque for the overpayment with a covering letter.
Not reissue, repayment of overpaid amount.

 

[RCW20025]

Hi
They have paid amount on invoice plus vat
Thanks

Are you assuming this or have they confirmed this? No need to get them to cancel the cheque simply cash the cheque, record the over payment in your records, and either set against future work to be done or return a cheque to the department in question.

As a side note it's certainly a comfort to hear how conscientious government finance workers are with public funds...

 

[Mr D]

Are you assuming this or have they confirmed this? No need to get them to cancel the cheque simply cash the cheque, record the over payment in your records, and either set against future work to be done or return a cheque to the department in question.

As a side note it's certainly a comfort to hear how conscientious government finance workers are with public funds...

LOL.
Had a government grant of £7k one autumn, multiple conditions attached and had to be spent by 31st March. Easily done and had to submit regular paperwork that included figures I already collected.

Then in the early February they got in touch, we could have a further £12k if we could guarantee to spend it by 31st March. A tough job but yes could be done. Then late February they offered another £5k same conditions. Was an extremely tight squeeze and meant buying in a chunk of stuff in one year that would have normally purchased in the following financial year but managed it. An initial £7k turned into overall £24k.
And the company I worked for was not the only one in the area that had money chucked at it.

Government departments don't like unspent funds at end of the year.