Morning, I have a VAT question.
I’m not registered for VAT (don’t earn enough), and generally charge a flat hourly rate, from which I then pay my tax and NI.
A recent new client has a purchase order system which has required me to quote upfront and then they issue a purchase order.
That’s all fine, but I have just received the latest purchase order which has broken down the sum agreed into ‘unit price’ and ‘VAT’.
Does this mean that if I accept this I have to pay the VAT as well?
Or should I get back to them and get them to take the VAT off the purchase order?
I’d get back in touch with them and ask to have the VAT portion removed from the purchase order (PO). If you ‘re not VAT registered, you don’t have to pay VAT.