customer wants reciepts to claim vat back

[voivod]

Have been doing work for a customer. They are now wanting invoices from merchants so the can claim vat back . (We are not vat reg yet).
Dont really want to do this. We have added 10% to prices .
What is best way to resolve ?
Got an accountant who doesnt bloody answer phone. ( yes he will be ditched grr)
any help would be greatful

 

[gasmanrob]

They are your receipts for your accounts. If they go missing and you can't prove the receipts then it will be added to your taxable income. If they wanted they should have stated it at the start and an arrangement could have been made for them to purchase the goods themselves.

alternatively produce the receipt and if your 10% is questioned it is perfectly acceptable and done throughout most industries. Obviously you get discount from the list price plus the use of your credit facility's and time spent sourcing and obtaining materials why wouldn't you put a mark up on.

you produced a price they accepted end of

 

[hammers4spanner]

Tell them no simple as that they have bought materials via your business otherwise they should have supplied.

 

[Ray Stafford]

They can't claim the VAT back based on invoices from your merchant to you.

 

[Plumbstar Tom]

i smell a fish here, as per what Ray said

there is an underlying reason why they want these?

10% is quite low IMHO for a mark up taking into consideration time spent ordering, collecting, transporting and the hassle factor is something goes wrong and needs to be returned

 

[Ray Stafford]

I can see why they would want to.

Lets say Voivod paid £1000 + VAT for the materials. Assuming he marked up the post-vat price, the customer will be paying £1320 for materials.

Whereas if he bought them himself, and claimed the VAT back, he would only have paid £1,000. So he is £320 out of pocket, of which only £120 has gone to Voivod - the chancellor has the rest.

So if he either doesn't fully understand the VAT regs, or doesn't care that much, he can at least get £200 back by (illegally) putting Voivod's receipts through his books. And he will probably get away with it unless a sharp-eyed VAT inspector picks it up.

Which is why HMRC estimate small/medium business tax fraud to cost nearly twice as much as all the big company schemes that we hear about from Google, Starbucks, Amazon etc put together.

 

[voivod]

It is a BIG company that is asking for them

 

[Ray Stafford]

It is a BIG company that is asking for them

Then they should know better.

 

[parkesy_plumb]

has the customer paid you yet?

 

[Ray Stafford]

has the customer paid you yet?

good question parkesy.

 

[rocketmanbkk]

You have not charged VAT but you have supplied &
Fitted whatever.

You have charged a price to complete a job.

If the company wanted your VAT receipts then they should have agreed this at the outset.

This is no different than you giving someone your fuel receipts so they can claim the VAT back.

Is not right, the choice is give them the receipts & or not.

I say tell them you but on account & nothing is separated. It's a no go for me, no go.

 

[clarky101]

And they didn't supply so they could use your discount.....

 

[Millsy 82]

My receipts are mine not anybody else's. You have to have them as proof of purchase as far as I'm aware. If you give them the receipts that x amount extra more tax you will have to pay. (I might have that wrong though)

If they wanted to claim the VAT back they should of gone with a VAT registered company. There problem not yours.

 

[rocketmanbkk]

Correct

 

[markfxy]

tell them to do one your receipts are for you and nobody else and next time put a 30% markup on your materials, 10% won't even cover your costs