I’m not VAT registered, I’m not a sole trader.

My new accountant quoted a price for my personal tax affairs, and when he’s billed me he’s added VAT on top of the agreed price.

He did not at any time state that his cost was net (without VAT), and so in the absence of saying aotherwise was I right to assume that his cost was VAT inclusive?

Slightly peeved at him quoting me a net price because as an individual I pay VAT on everything regardless.

Even more peeved that an flippin’ Accountant failed to make this crucial point clearer!

Should I tell him to do one?

I am a sole trader but not VAT registered. When quoted a price for something I ask if it’s inc or not inc VAT. Otherwise I assume not inc VAT.

dd has it – always ask and always expect it to be ex-vat.

Ask him if he’ll give a discount for cash.

Fees are always quoted as ex-VAT. VAT is a tax on top of the cost.

You could tell him to do one but from your lack of experience I think you’ll be needing a good accountants help.

No, tell him he should have quoted properly and he should have asked you if your VAT registered.

You are not the expert here, he is and he should have made it clear. I would tell him to charge what he quoted or bugger off.

was I right to assume that his cost was VAT inclusive?

no. any professional service B2B is usually quoted as ex vat. if i want to buy some camera equipment from a high st store i’ll assume the prices in store and on their website are inc vat, if it’s a specialist dealer that usually only sells to working professionals the prices are always ex-vat.

pay up and deal with it.
and TBH if my accountant wasn’t vat registered i would question how good they were!

the other point is that your accountant should have saved you way more than his/her fee in tax so the 20% should be looked at as good value.

you not being vat registered has nothing to do with it.

quotes are for work, always expect that delivery, booking fee, credit card charge and taxes are over and above.

MrSmith this was not B2B, that’s the point

Many industries are heavily regulated when it comes to making it crystal clear when fees do and do not include VAT, you’d think that the financial services industry would be one of them

I wouldn’t tell him to do one, because it’s standard practice.

Probably worth mentioning that it came as a surprise to you, isn’t something you’d budgeted for and if there may be scope to adjust the fee?

Or, wee in his shoes.

I would tell him to charge what he quoted or bugger off.

I must try that the next time I phone a supplier for a quote on some materials. 😆

EDIT: oh and remember, it’s not the accountant that’s charging the VAT, it’s the damn guvmint.

But DD that’s a B2B transaction – not the same

Did he give you a written quote? If so does it mention tax anywhere, or include his VAT number?

But DD that’s a B2B transaction

Ah, I see…bit of a dodgy one there then. I can kinda see where you’re coming from to be fair.

I think it’s a bit of “he shoulda said, you shoulda asked” thing. I dunno, think you’re gonna have to suck it up and just make sure you ask in future. There are no hard and fast rules for this one I reckon.

While I sympathise and understand where you’re coming from, as others have said, this is pretty much standard practice. The accountant is charging you what he / she said that they would. The government is choosing to levy a 20% tax on it, and your accountant is made to collect it for them.

As for the private / business part, no difference. Don’t forget that there are lots and lots of businesses that aren’t registered for, and therefore can’t recover any, VAT too. That’s their problem, not their suppliers’

enfht, what service did the accountant provide? you stated personal tax affairs but that can cover a great deal on tax returns.

If the quote was in writing and set out in such a way that a reasonable person would believe that the total quoted would be the total amount to pay then I reckon you might be justified in telling him that is all you will pay.

If the quote was verbal or there was anything on the quote that might lead a reasonable person to think tax would be added to that total, then I think you need to chalk it up to experience.

You also might want to check that the accountant IS actually VAT registered.

When you first appointed your accountant you should have been given a terms of business document and beg asked to sign a copy.

In that document it will lay out the basis of the relationship, what your accountant can and cannot do for you etc.

In this document it will include a section on fees which will read blah blah blah our fees are quoted net of VAT blah blah blah.

The invoices and quotes do not need to specify VAT etc if your terms of business has this but in them and they form the contractual basis of your relationship with your accountant and you should be aware of the contents thereof.

I would say if he has given you a written quote it should state on it either VAT included at X%, or ex VAT.

I buy plenty of things in for our business and some items include VAT in the unit prices and some don’t, but they always state how much VAT you’re paying.

All professionals I have dealt with quote for their fees not their fees and vat. To be fair I always add vat in as a sepsrate item on written quotes . Our proforma terms which are sent out at the start of each instruction also make it clear the client will be paying VAT on our services.

Turning this around, is it possible for you to become VAT registered?

I’ve done this in the last 6 months (after many years of being not VAT). My clients (actually, really just one) are already VAT reg. so makes no odds to them, additionally I went through the flat rate VAT route, and there’s an additional discount in first year.

Turning this around, is it possible for you to become VAT registered?

Probably not worth it for just one invoice and I’m sure the OP isn’t really trading anyway?

ah, you’re right — I misread the “not a sole trader” as “I’m a sole trader”. note to self, RTFP.. :0)

I might have done that too. 😳 😀