MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
As STW is the font of all knowledge, a VAT question.
I recently had a firm in to cut some trees down. They provided me with a quote, I paid the deposit, after a delay while planning approval was granted the work was done.
Today the bill arrived. There is a cost for the work, plus VAT at 20%, minus the deposit that I paid.
However in the period between paying the deposit and the bill arriving VAT went up from 17.5% to 20%. Therefore should I be paying 20% VAT on it all - or should be be split between the two parts, i.e. 17.5% for the deposit and 20% the remainder.
I have no criticism of the company, they did an excellent job. They arrived promptly, worked quickly and cleaned up after them. I will be paying them tomorrow for the full amount that they have charged.
However as a point of interest I would like to know if this is the correct way of charging VAT? I do realise that asking the VAT man may get me the correct, but asking STW is far more interesting!
VAT is usually charged at the prevailing rate when the works were carried out. Not sure about the whole deposit thing though - did you get a receipt for your deposit?
VAT is chargeable when the goods or service is supplied/provided therefore in this case the correct VAT has been charged @ 20% irrespective of when the deposit was paid.
PS you should have asked them if they would have done it for cash 😉
one of our service suppliers charges VAT when they issue the bill.
hey ho!
Bottom of p8 discusses your situation exactly...