15% VAT on job started in March

[skud]

Hi all, was wondering if someone could advise me on the following.

We had a bathroom renovation done in March. The quote/invoice included VAT at 14%. We were expected to pay 3 amounts - a deposit, secondary payment on start and final payment on completion. We've paid the first two payments but not the final one as the job hasn't been completed in full yet. He has only returned in April to finish the job.

We've now received the final invoice where he has charged 15% VAT on the total amount that was originally invoiced in March, regardless of the amount we've already paid.

Is this correct?

 

[LCBXX]

Ask for a 1% discount on the invoice.

 

[LazyLion]

Hi all, was wondering if someone could advise me on the following.

We had a bathroom renovation done in March. The quote/invoice included VAT at 14%. We were expected to pay 3 amounts - a deposit, secondary payment on start and final payment on completion. We've paid the first two payments but not the final one as the job hasn't been completed in full yet. He has only returned in April to finish the job.

We've now received the final invoice where he has charged 15% VAT on the total amount that was originally invoiced in March, regardless of the amount we've already paid.

Is this correct?

Unfortuinately it is correct. The VAT has to be paid over in the month in which the invoice was generated.
Just bad timing for you from the Government, but I'm sure you are not the only one sitting in that position.
We had customers who asked for orders at the end of March, so we made up quotes for them. But then they only confirmed the orders in April and unfortunately we had to charge them the 15% VAT.
Surely everyone is aware of how this works?

 

[Thor]

Hi all, was wondering if someone could advise me on the following.

We had a bathroom renovation done in March. The quote/invoice included VAT at 14%. We were expected to pay 3 amounts - a deposit, secondary payment on start and final payment on completion. We've paid the first two payments but not the final one as the job hasn't been completed in full yet. He has only returned in April to finish the job.

We've now received the final invoice where he has charged 15% VAT on the total amount that was originally invoiced in March, regardless of the amount we've already paid.

Is this correct?

Will the situation be different if a consumer used a service prior to April 1, but only made a payment after that date? For example, if my plumber issued an invoice on April 2 for services that was delivered in March, may he claim VAT at 15%?

CHARLES DE WET: Specific rules will be applicable in circumstances like these and consumers will need to determine exactly when the services were rendered. If a plumber delivered services prior to April 1, even if the invoice was issued after that date (or payment was made after the Easter weekend for example) the rate of 14% will still be applicable. If the job required several days of work, started on March 25 and was only completed later in April, the plumber will have to issue an invoice at 14% VAT for the portion of the work completed prior to April 1, and 15% for the work thereafter.

 

[Werfetter]

If the job required several days of work, started on March 25 and was only completed later in April, the plumber will have to issue an invoice at 14% VAT for the portion of the work completed prior to April 1, and 15% for the work thereafter.

This is how I have it as well. Someone explained the headaches of their invoicing to me the other day because the monthly service they supplied are invoiced from the 15th to the 14th so the March/April period will have 2 invoices with the different VAT rates...

OP easiest would probably be to request the two payments made in March to be invoiced separately for the March period and the outstanding amount be invoiced for in April?