Agents and VAT

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System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in General member discussion
Could somebody enlighten me to the reason why as an agent for my clients who operate VAT, if I want to process their VAT return through HMR&C using my agency facility I have to be registered for VAT as well?

I have up until now been registering as my client and processing that way, but thinking that may be dangerous I have now bitten the bullet and, even though I am under the t/o threshold I have registered for VAT wef 1st January 2008. :?:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:Agents and VAT

    There is no reason!

    I believe it was originally introduced as a measure to make sure only 'serious' accountants could file on behalf of clients. A bit of short-sightedness on behalf of the old C&E.

    I also understand HMRC are under pressure to change this ridiculous rule and have committed to do so by 2010 although some people 'in the know' have suggested this might actually take place over the next couple of months.

    My guess is it will be nearer 2010!
  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:Agents and VAT

    Umm

    Thanks Dean for your reply I presume that you are in the Know then?

    What a nuisance :evil:

  • System
    System Posts: 100,534 🤖 Admin 🤖
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    Re:Agents and VAT

    it is a complete nuisence and completely lacking in logic - you (as agent) don't need to be operating as a company to file a client's corporation tax return, you don't need to be an employer to file a P35 and you don't need to be a contractor to file a CIS return, so why oh why do you have to be VAT registered to file a VAT return?! so much for HMCE and the Inland Revenue operating as a single entity...

    rant over :twisted:

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