VAT changes

[Ted]

Just about to pay this month and thought about the VAT changes. The IDnet website is showing the reduced tariff of £24.46 but my customer account is showing £24.99 as normal, maybe because it was invoiced last month.
So, am i right in thinking i should pay the lower charge?
Not a big deal, i just want to get it right.

[Rik]

You pay the higher rate due to the tax point, Ted. Next month's bill will be reduced.

[Ted]

Thanks Rik
i'll just have to keep on dreaming about saving £0.53p next month. (sigh)

[Sebby]

[Rik]

Mine was only about 30p, I can't even buy a Mars bar with that.

[Sebby]

You could get a couple of Fudge bars.

[Rik]

I'll take your word for that, Seb, I have no idea on shop prices - my food is all delivered.

[Sebby]

I think they're 15p, although what with inflation and all that...

[Rik]

My waistline could do with some deflation.

[Ted]

You can mock but that adds up to a whopping £6.36p for a whole year. Thats a weeks internet for free!

signed
Scrooge

[Rik]

Yippee! Let's have a party on the strength of that, Ted.

[Ted]

Fantastic idea. Everybody over to Rik's place, see you there

[Rik]

I'm nice and central - or, as Sue refers to it, fat.

[Ted]

 

[David]

Just checked my invoice and its gone down,this would allow for my new head phones 

[Rik]

Not if you'd gone to Bose.

[David]

I have 


http://www.bose.co.uk/GB/en/home-entertainment/personal-audio/headphones/acoustic-noise-cancelling-headphones/index.jsp

[Rik]

QC3 or QC2. I have the 3s, they are brilliant. 

[David]

I will let you know 

[Sebby]

My waistline could do with some deflation.

That's on the way, apparently.

[Rik]

I know. January is going to be tough. 

[Sebby]

I'm not sure if we're talking about the economy on your food intake now.

[Rik]

Both. 

[Sebby]

[Rik]

 

There's still the fillet log for January though...

[David]

Then the  chicken teak a 

[Rik]

 

[Sebby]

[David]

 

[g7pkf]

I have 


http://www.bose.co.uk/GB/en/home-entertainment/personal-audio/headphones/acoustic-noise-cancelling-headphones/index.jsp

More money than sense....


























Sorry thats what the wife said when i showed her the surrond sound system i wanted.  £3.5K

got told order it and you will be listening to it on your own, to which i pointed out i normally do as she hates surround sound and i always put it on when shes gone to bed (mainly to watch stargate). The look said it all!!!

[Rik]

 

Where are you sleeping tonight, Dean?

[David]

Move over Den 

[Ted]

Today i received an amended invoice from IDnet, reflecting the change in VAT.

So, the drinks are on me

Please form an orderly queue at the bar, any pushing and shoving and you'll be asked to get to the back.

[Lance]

i'll have a pint please!

[Ted]

i'll have a pint please!

On its way, by courier Pig  be with you soon

Cheers

[Rik]

i'll have a pint please!

That would be about a year of subs, wouldn't it?

[Sebby]

It would.

[Ted]

Offers over now, have a random beer related VIDEO anyway 

[Ann]

I paid IDnet a year in advance, so I appear to have missed out on the VAT decrease.  That's a bummer.

[Ted]

I paid IDnet a year in advance, so I appear to have missed out on the VAT decrease.  That's a bummer.

Give them a call Ann, I'm sure you'll be entitled to some sort of refund.

[Simon]

Give them a call Ann, I'm sure you'll be entitled to some sort of refund.

I'm not so sure of that.  Doesn't it go by the date of the invoice?  If IDNet have collected the full payment, and also the VAT at the 17.5% rate, they would have to pass that on to the Vatman at the rate they charged it, wouldn't they?

[Sebby]

It's a strange one - I'm not sure exactly what would happen. Indeed they would have already paid over the 17.5% collected...

[Simon]

I would have thought it the same as buying a product, in that if you bought something in November, you couldn't them claim a VAT rebate in December.

However, I'm only guessing, so it may still be worth a call to IDNet after the holiday.

[Ted]

I'd give them a call, it would seem a little harsh to lose out just because you were a good customer

[Lance]

There is something to do with the timing of the supply of the service, but i think the tax point of the invoice is the main point.

[Ann]

I don't think I'll complain to them about a few pence.. seems a bit petty.

[Sebby]

I don't think I'll complain to them about a few pence.. seems a bit petty.

You mentioned it.

[Ann]

So what?  Mentioning it here is different from complaining officially. 

[Simon]

It's an interesting point though, as it could apply to other things one has paid up front for, such as concert tickets, holidays, etc.

[Ted]

If this is correct, it would seem as if its up to the supplier what they do, i'm not sure

"For goods and services received or delivered after 1 December but paid or invoiced for using the old 17.5% rate before 1 December 2008, a company can either leave the VAT charged to the customer at 17.5% and account for that to HM Revenue & Customers (HMRC) or account for it at the new rate of 15% on the amounts already received or invoiced. Companies should issue a credit note and refund the difference to customers if they have already issued a VAT invoice showing the old rate of VAT. If they haven't issued a VAT invoice, the business can account to HMRC for the 15% and would normally be expected to refund the difference to the customer, assuming the VAT has been passed on."

you can never find an accountant when you want one. 

[Inactive]

you can never find an accountant when you want one. 

[Rik]

My own instinct is that, despite your quote, Ted, the tax point on the invoice will determine VAT rate, but we need Sebby or Lance to be definitive. OTOH, calling IDNet after Christmas would be the quickest way.

[Ted]

You're probably right Rik, like i say i'm no accountant. TBH i don't see it as an issue with IDnet as it really is only pennies, although as Simon mentioned earlier it would be interesting to know what will happen for people that have made substantial purchases of goods and services, that they have paid for but won't receive until after 1st December.

I know what my common sense tells me should happen but, that's not always a term you can use in conjunction with certain government agencies. 

[davej99]

The rules seem clear to me but I am not an expert.

Goods and services received after Dec 1st attract vat at 15%. Therefore, if advance payment has been made, including vat at 17.5%, the supplying company is empowered, but not required, by legislation to credit the customer with the difference in vat relating to the portion of goods and services supplied after Dec 1st.

When the refund is issued, the difference in vat charged is deducted from the current sum due to HMRC and there is no penalty to the supplier.  For supply to a vat registered business it makes no difference to them as well. For supply to a non-vat registered person or business it makes about 2% of a difference. There is no penalty to the supplying company, either way, other than time and effort, however, it is down to them.

It seems common sense to refund on request, customers who have paid in advance on a monthly contract, and are non-vat registered. Those customers have the option to cancel and get a full refund anyway. There is no point in refunding all customers automatically because this creates pointless vat accounting for the company and for vat-registered customers.

Therefore HMRC appear to be doing the "common sense" thing and it is all down to the supplying company and good customer relations.

[Rik]

And more pain for the traders.

[Ann]

I may email them after Chrimbo to ask about it.  Just because you've all got me interested to know now.

[Simon_idnet]

Don't forget that, though the VAT rate change may have cost you a few pence more this year, by the same token you will gain next year.
S

[Rik]

Happy Christmas, Simon.

[Simon_idnet]

Cheers, and you!
S