VAT and Remittance

[whiteleyl]

Hi I have a bit of a dilemma and wonder if anyone has any advice.

We have a Service Level agreement with a company who charge us 15%+VAT for suppling us work. When we invoice them when the work is completed they deduct the SL agreement charge off our invoice and pay us the balance. They then send us a remittance which lists all our invoices which they are paying, it shows the date, Our Invoice No, Amount paid, description, Address. Then underneath this they list the service level agreement charge which identifies Date, our invoice No, amount they have deducted, and the description is Service Level agreement charge. The charge on this instance is £13.86 so I understand it can be done as a simplified invoice because it is under £250 excluding VAT. They are saying they cannot issue an invoice because their system cannot do this and they are having to manually enter everything at the moment (they have just taken over another company and will also be changing over systems in Oct). Will this remittance be sufficient for evidence for input vat?

 

[Scalloway]

I have seen this type of remittance being used for sales on commission at agricultural marts. If all the other VAT details are shown I would just claim the VAT.

 

[whiteleyl]

Thank you for your reply. It looks like everything is on the remittance and I can back it up with documentation i.e SL agreement the only thing that is missing is their Vat registration number, this is not on the remittance but they have given me that via email, I was going to ask them to see if they could add the VAT Reg number. Do you think it is ok if it is not on the remittance but I have been given it.

Thank you

 

[Scalloway]

Legislation allows HMRC to use their discretion to allow deduction of input tax based on alternative evidence. More details here.

Businesses: Claiming back VAT without an invoice - Tax Insider

www.taxinsider.co.uk

 

[MyAccountantOnline]

Thank you for your reply. It looks like everything is on the remittance and I can back it up with documentation i.e SL agreement the only thing that is missing is their Vat registration number, this is not on the remittance but they have given me that via email, I was going to ask them to see if they could add the VAT Reg number. Do you think it is ok if it is not on the remittance but I have been given it.

Thank you

I’d push them for this particularly a VAT number.

 

[whiteleyl]

Hi thank you all for the replies and yes I have pushed them for the VAT number which they have given me.

Thanks again.