Assuming you have already received your VAT registration details from HMRC, you may now begin to issue your customers with proper VAT invoices.
But it is actually up to you whether you charge the VAT on top of the original invoice you’ve already issued; or choose to suffer the VAT yourselves by deeming it to have been included in the original invoice.
However, there is something you should bear in mind. If you are dealing with other VAT-registered businesses, they won’t mind you charging them for the additional VAT because they’ll be able to get it back from HMRC on their next VAT return. But if your customers are members of the public or someone else that can’t recover the VAT, they won’t be too happy to receive this unforeseen bill.
Your local TaxAssist Accountant would be happy to manage your VAT affairs and returns for you. Contact us for more information and to be put in touch with your local office.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.