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Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.
Is the company seeking to charge VAT on the monies they claim are due please?
Do you accept that you owe the debt and the only reason delaying payment is their refusal to supply you with a VAT invoice?
We argued about the services they provided my company not been good enough. Then insist I must pay all outstanding in the two year contract for employment law services. I got fed up and said I will pay them but I need a VAT invoice, they agreed and promised to send me that when I spoke to the credit controller. Only for me to get a letter today that they are about to institute legal action for the full outstanding amount because I have refused to pay. I don't want to go to court as it may affect the credit rating of my small business
Thank you. Have they raised an invoice at all to date albeit one that is not a VAT invoice?
No. we started with direct debit which I cancelled after they didn't provide us any service for three months. They claim it was a mistake from their system which I told them is breach of contract. I want to pay but they have never given me a VAT invoice.
they don't send any invoice, only state what is owed including the VAT
Thanks. Under the Value Added Tax Regulations 1995, Part II, Regulation 13 a business eeking to charge VAT must provide a VAT invoice within 30 days of the date the supply of the service has taken place.
Accordingly if they have refused to supply a VAT invoice they are in breach of the above regulations which is a criminal offence though it is quesitonable whether HMRC would take any action.
If they are in breach of the above regulations, and continue to refuse to supply a VAT invoice as required by law, you may consider paying the invoice without the VAT element and advise them that the VAT element will be paid on receipt of a VAT invoice. You may also go on to remind them of their obligations under the above regulations and that continued refusal to provide a VAT invoice may result in your reporting the matter to HMRC.
It is important that you keep a record of your written request for a VAT invoice in case the matter goes to court so you can use such evidence to have either have the matter struck out or have costs awarded against them
There is no impact on your credit rating for someone issuing proceedings against you in court. There is only any impact on your credit file if you fail to pay any court order within 28 days or alternatively the date specificied in the order. If you do not comply with any court order or appeal it then it is at that stage a CCJ is entered on your credit file. Nothing is entered if you pay a court order in time.
Can I help you with anything else or has the above answered your questions satisfactorily?
A pleasure. I hope you are able to resolve your dispute with the minimum of fuss.
If I can assist any further as the situation develops please do not hesitate to revert to me
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sure will do that