Invoice error

swamik1 · Post by **swamik1** » Mon Feb 13, 2012 8:15 pm

Hi,

I am a contractor and operating thru my Limited Company. I have made some mistakes in my company's address in the invoice. Also I have been receivng my payments monthly basis but I sent a weekly invoice to my agency.

Do i need to correct my invoice and inform my agency about the correction and also do i need to send a monthly invoice to my agency?

Thanks
Kannadasan

nnj10 · Post by **nnj10** » Mon Feb 13, 2012 8:29 pm

You definitely need to refer your payment terms in your Contract with your agent. If it says Monthly Invoice and Payments that is what you should be doing.
Would advice to consult your accountant on matter relating to correcting a previously issued invoice, may not be as simple as it sounds. Take professional advice.

QuickSam · Post by **QuickSam** » Mon Feb 13, 2012 9:55 pm

No one asks you for invoices. Salary and Dividend payment should be correct from Business account to personal account and that should be enough.

What you do for the weekly / monthly billing is a matter to be discussed with your accountant and UKBA doesn't look into it.

swamik1 · Post by **swamik1** » Tue Feb 14, 2012 8:42 am

My contract says that monthly payments but i prepared weekly invoices because i submitted my timesheets on a weekly basis. So to keep a track of my days billing i prepared a weekly invoice. But my agency made the payments after calculating all my weekly invoices and paid me at the end of every month.

What now worries me is that I have seen many people saying in this forum that UKBA is asking invoices for the payment made into my business account.

I will have to apply for my extn in July 2012.

AccountantMatthew · Post by **AccountantMatthew** » Tue Feb 14, 2012 9:07 am

You can rectify the invoice errors by reissuing them; notify the invoice recipient first however to prevent any confusion, marking up the invoice if necessary.

Regarding payments v invoicing, it's not necessarily anything to worry about. Many companies make batch payments of invoices (i.e. make one payment across several invoices) so it's a common situation. Just ensure that this is flagged up some how so that UKBA can follow what has gone on. Your accountant will come in handy here.

If your agent wants you to invoice monthly in future then do so or if they want you to reissue any then they'll tell you too - just explain to them what you have done here and they can instruct.

I gather with your last comment that the agent are paying into the company account rather than you personally by the way(?)

swamik1 · Post by **swamik1** » Tue Feb 14, 2012 10:14 am

Hi,

Thanks for your prompt reply.

I have finished contract with this agency but I am in touch with them. I did not mention my VAT regn no in my invoice.

Is it mandatory to mention VAT in the invoice?

Thanks
Kannadasan

swamik1 · Post by **swamik1** » Tue Feb 14, 2012 10:30 am

I gather with your last comment that the agent are paying into the company account rather than you personally by the way(?)

Could you please explain this line? I am not able to understand this line.

Thanks

QuickSam · Post by **QuickSam** » Tue Feb 14, 2012 10:30 am

You can issue a VAT only invoice if you are VAT registered now. Most companies and agencies are used to it.

This invoice will not have any invoice amount, just the VAT amount that you've not claimed.

swamik1 · Post by **swamik1** » Tue Feb 14, 2012 10:33 am

I do have VAT regn number but I forgot to mention the VAT Regn number.

That's why i am worried and thinking of reissuing my invoice with the VAT regn number.

Thanks

QuickSam · Post by **QuickSam** » Tue Feb 14, 2012 10:50 am

You don't need to re-issue the invoices, just issue a single VAT only invoice covering the whole period. Or you could issue VAT only invoices for each payment period. Check with your accountant for the best option.

PS: In case you don't have an accountant, this is the right time to get one.

AccountantMatthew · Post by **AccountantMatthew** » Tue Feb 14, 2012 1:44 pm

Is it mandatory to mention VAT in the invoice?

Yes! This link will tell you what should be in a VAT invoice:
http://www.hmrc.gov.uk/vat/managing/cha ... voices.htm

I gather with your last comment that the agent are paying into the company account rather than you personally by the way(?)

Could you please explain this line? I am not able to understand this line.

Yes - hopefully your client (the agent) is paying the company who you invoice through rather than you personally - so into the company bank account rather than your own personal account.

AccountantMatthew · Post by **AccountantMatthew** » Tue Feb 14, 2012 1:48 pm

Just to follow up on the later posts:

- Have you charged VAT on your invoices? (so have added 20% in a separate line item to your net charges)

- Do you have an accountant at the moment?
With this I'm not touting for business (honest!) It's more a case of if you do then speak to him/her to talk you through things - I don't want to tread on any toes or get used as a second opinion and pitted against them that's all(!)

QuickSam · Post by **QuickSam** » Tue Feb 14, 2012 2:12 pm

I don't think he's charged VAT and that is the reason he wants to amend the invoices.

In my opinion he could raise a VAT only invoice. I have done the same after getting VAT registration. Prior to that I was just sending invoices without any VAT amount. This was as suggested by my accountants and my client organisation (BBC) also accepted it.

swamik1 · Post by **swamik1** » Tue Feb 14, 2012 8:26 pm

Hi guys,

Thanks for showing interest on me.

I have already charged VAT in my invoices. I forgot to mention the VAT regn number. But i have sent my VAT certificate to my agency so he knew that I am VAT registered and he paid VAT along with my payment. I need to amend my invoice because I messed up my invoice due to the following reasons.

The financial year for my company is 30th November. I thought of saving some Corporate Tax for this year. So what I thougt was to show Oct and Nov invoices in the next financial year. Because I knew that my agency will pay and also paid my Oct and Nov invoices in the December month. So I thougt whatever the payment credited afte 30th Nov will be accounted in the next financial year. So I checked with my accountant about this, he said that if the invoice is dated before 30th Nov and credited after 30th Nov it will be taken for Corporate Tax. So I changed the invoice date to 1st Dec for Oct billing. Now I feel that Visa extn is more important to me than saving Corporate Tax and I want to put the original date for Oct billing. I dont much worry about Nov billing.

I hope this is very clear.

Thanks

AccountantMatthew · Post by **AccountantMatthew** » Wed Feb 15, 2012 8:22 am

In which case swamik1 then get your guidance from your accountant. They are closest to your situation so will know more facts than anyone on here and can advise accordingly.

If you completed the work before your year end date then it should be included in the year to 30/11/11 accounts; it doesn't matter whether you invoiced it until later or not. There are also further rules regarding the tax point of VAT invoices which will be relevant. Again however it's not my job to tell you this so your accountant can explain further.

All the best!

dharma26 · Post by **dharma26** » Wed Feb 15, 2012 8:53 am

I am sending invoices to my agent. While submitting these invoices to Home office, is it all invoices should be signed and stamped by accountant? or Is my signature enough? Please reply.

swamik1 · Post by **swamik1** » Wed Feb 15, 2012 10:56 am

Hi Matthew,

Thanks for your reply. My accountant also said like you are saying. He also said one more point that if you dont mention the dates of my billing in the invoice we can avoid that billing in the current financial year. Just to mention the days of work and not the dates of work in the invoice.

Thanks

QuickSam · Post by **QuickSam** » Wed Feb 15, 2012 11:21 am

Swamik1,

U want to trick system and the system has ways to trick you back. It's best to stay away from such manipulations. Just keep things straight and it just makes your application and processing straight forward.

AccountantMatthew · Post by **AccountantMatthew** » Thu Feb 16, 2012 10:32 am

Although I did say that I was keen to keep out of giving advice where you have another accountant I've got to say that ....

if you dont mention the dates of my billing in the invoice we can avoid that billing in the current financial year. Just to mention the days of work and not the dates of work in the invoice.

.... is not correct. Sales appear to be being understated and several implications can arise from this.

Accounting standards do back me up on the accounting treatment that I mentioned above!

Also for those reading the thread, just in case if anyone was getting confused from the post directly above this, all of my professional advice is factual and is no way intended to manipulate the payment or non-payment of tax(!).

swamik1 · Post by **swamik1** » Fri Feb 17, 2012 8:45 am

Hi,

I got some queries on dividend payment

From July onwards I transfered a dividend payment and gave a following narration in the bank statement. Later on i came to know dividend payment is not like salary payment which we have to transfer every month. My bank statement is also showing the following description everymonth. Is that ok to have following narration in the bank statement for dividend payments?

July-2011 Dividend
August-2011 Dividend
September 2011 - Dividend
October 2011 - Dividend
Novemeber-2011 Dividend
December -2011 Dividend

Thanks

AccountantMatthew · Post by **AccountantMatthew** » Fri Feb 17, 2012 9:14 am

Yes that's fine.

I'm gathering that all things dividends are now in order. Ask away if there any more questions though(!)

swamik1 · Post by **swamik1** » Fri Feb 17, 2012 9:27 am

Hi Sam,

As you know the mess up i did in myinvoice, I dont know how to rectify the mistakes in my invoice. Especially my Oct and Nov invoice

Thanks

QuickSam · Post by **QuickSam** » Fri Feb 17, 2012 11:32 am

Well the mistakes were made because you were trying to, let's put in the most appropriate manner, 'play hide and seek' with the Tax system.

Now you are trying to rectify the same, as you've realised that your visa extension is in vicinity and you might have an issue with this when a CW considers your application.

I believe in just one thing. A person is the best judge of his own actions.

swamik1 · Post by **swamik1** » Fri Feb 17, 2012 2:12 pm

Hi,

To rectify my mistakes in invoice, I am thinking of chaning the dates in invoice which is going to be the original date and send a copy to my agency. I will not have problems in convincing my agency.

Is that OK

Thanks

QuickSam · Post by **QuickSam** » Fri Feb 17, 2012 2:15 pm

will that rectify the payments showing up on your bank statement?

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