× Welcome to the late payment of commercial debts (interest) act. Forum!

Post questions here regarding the use of the Late Payment Legislation

VAT on Late Payment Charges

Start
Prev
1
Next
End

logicool
Topic Author
Offline
New Member

13 years 8 months ago #363 by logicool

VAT on Late Payment Charges was created by logicool

Can you please let me know if I should be charging VAT on either interest or compensation charges?

Please Log in or Create an account to join the conversation.

David J
Offline
Administrator

13 years 8 months ago #364 by David J

Replied by David J on topic Re:VAT on Late Payment Charges

Hello

You do not charge VAT on either the interest or the compensation.

When doing your calculation though, you include VAT. So for a £1000.00 invoice, you will make a claim based on £1200.00.

More information can be found on this page about how to calculate late payment interest and compensation

Kind regards

David

Please Log in or Create an account to join the conversation.

logicool
Topic Author
Offline
New Member

13 years 8 months ago #366 by logicool

Replied by logicool on topic Re:VAT on Late Payment Charges

Thank you for your help!

Please Log in or Create an account to join the conversation.

Start
Prev
1
Next
End

Moderators: David J, james@cpa.co.uk, ralph@cpa.co.uk

Time to create page: 0.123 seconds

Joomla SEF URLs by Artio

Payontime.co.uk is owned by The Credit Protection Association Limited – Company Number: 217953
Address: CPA House, 350 King Street, London W6 0RP - Tel: 020 8846 0000
VAT number: 243 1228 00
The Credit Protection Association Limited is registered with the Information Commissioners Office: Reg number: Z7497476
Parts of this website such as the calculators are registered with the UK Copyright Service: Acc Number 121641 – Reg number 339668

Support Payontime

VAT on Late Payment Charges