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Sam
Sam, Accountant
Category: Tax
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We did some work client to which we were to receive part

Resolved Question:

We did some work for a client to which we were to receive part payment in shares of their company. They have stated that they are going to pay the VAT component of the shares in shares, not cash. While this is certainly not something we are willing to accept (since we have to pay the VAT in cash ourselves) we would like to know whether their proposal is even legal. This is to assist us in formulating our reply to them.
Many Thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your response

No its not legal they must pay at least the VAT as monetary as this isnt even your money - this you collect for HMRC VAT based on your charge made - so you cannot sanction a payment in anything other than sterling to facilitate this (and you can quote this in your position back to them)

Let me know if I can assist further

Thanks

Sam

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