Invoice/Payment Query

zziplex

Hi all,

Just a quick query in relation to receiving payments, any help appreciated as taxation etc its not my strong point.

I myself am a sole trader running a services based business which is not registered for vat as turnover is under the capped amount. Up to this point I have worked directly with customers being paid on the day etc. Now I have been offered occasional work offering my services with a guy who runs a limited company which is registered for vat.

My main question is how does the invoice/payment procedure work with myself a sole trader not vat registered and him who is registered for vat with a limited company? I presume I send him an invoice for my usual daily/hourly rate and perhaps mention on the bottom of the invoice that my business is not vat registered? Also what charges am I or him for that matter liable to incur from a tax point of view? I want to ensure I do not get ripped off basically and understanding how the system works is key.

Many thanks in advance.

jimmii

What I would do is put a row under where you have your total amount and put Tax €0 that way they know for sure. At the top list your PPS number so they have that on file and will also be another sign that you aren't VAT registered they might then come back and ask for a VAT number but they really shouldn't need to. There aren't any additional charges in a case like that so nothing to be worried about there.

fred funk }{

If you're sub contracting you must be registered with revenue by the company you're working for, for that particular job and a 0% VAT rate applies anyway.

scwazrh

It all depends on the industry .