VAT question

[Andy Collins]

A local (to me) competitor is not VAT reg (yet) but is charging clients 17.5% vat on top of his prices. Apparently he has been doing this for several months now, my question is, Is this legal? Or can he only charge VAT from the period he becomes VAT registered? I think (I dont really know) that he is being fraudulent, by making out he is VAT reg. Maybe I'm wrong.

[RPA]

When I was doing some training one of the trainees was doing the same thing. Would not like to be in their shoes when Mr Vat catches up

[bruce tree]

you may find that he is close to the threashold. He may be quoting VAT because he will eventually have to pay it when he becomes registered.

 

its a difficult time when you are close to the threshold, if you send out quotes and the client doesnt get back to you for 3-4 weeks, you may have to add 17.5% to the original price!!

[Lee Winger]

I smell fraud or stupidity, i'm sure you can't charge VAT unless you have your unique VAT number on the system

[Anna]

If he's stating it's VAT on the invoice then it's illegal.

[Jonesie]

What will he do when someone asks for a VAT to put through the books. Thats when they'll get him.

[Andy Collins]

If its fraud, ie just to "legitimise" charging more for a job, then that bad enough.

If its stupidity, then he'll end up catching himself out, invoicing a Vatman would be about right. If you are close to the threshold, and think you may soon have to charge VAT, surely you inform the client of this and then if VAT isnt applicable, deduct 17.5% from the end billing?

[Steve Bullman]

ive quoted a few jobs lately knowing that im probably going to go vat registered soon....thats my problem though and i'll just lose out on 17.5%....charging someone the vat when not vat registered is a little bit silly.

[crosscut]

I'm getting close to the threshold now, but it would never of even occured ro me to start charging it until I'd got a number.

 

Used to work for a bloke who tried it once on a doctor to get more cash out of him, but he asked for a VAT receipt!

[Andy Collins]

is there a site to check whether or not someone is vat reg?