Is what this client is asking completely illegal? UK VAT law question.?

It is totally illegal. When his accounts are audited for tax and VAT purposes the invoice will not have a registration number on it. The auditor will highlight this and the HMCR will assume that you are charging the VAT illegally and pocketing the amount that you are putting down as VAT. Such an offence is very serious.

Give this man the proper invoice for the full amount and let him fiddle his accounts. This will not involve you in any way.

Suggest you do as I do when giving an invoice.

I put on it that payment is due on date of invoice and that the total amount invoiced does not include an amount for VAT as the business is not registered. I did this on every invoice to stop this kind of practise.

It is definitely illegal as you are not vat registered you cannot send a vat invoice. You deleting such an invoice from your files and replacing with a one without vat would be a deliberate fraud on your part and put you in the same class as him! If auditors picked up on this invoice, and that is the sort of thing auditors do, the invoice printed out in full has full backward tracking to you.

Just say sorry mate, cannot do that, it is against the law, and leave it at that.

Yes, I agree we pay too much in taxes. But think about what wouldn't get paid if there wasn't a standard tax rate: - police, fire, and emergency services - education - the military and defense - scientific advancement and research As soon as there's no money to come in to start paying for these things, people would be complaining that the services aren't provided! The thing to remember is that the federal government is NOT an entity to itself. It is part of America like you and I. It is made up of people that are our fellow citizens and run with money from all of our hard work. This is *not* a situation where the poor peasants are working to support the feudal lord and they're demanding more and more. Every bit that you put in, you will get something back in return.

Yes, you are not registered for VAT - if you do what he wants, and get caught, as well as a fine you will have to pay the £400+ to HMRC.

The problem is that you can't bill him for vat without a vat registration number.

As everyone has said, you cannot charge him VAT as you are not VAT registered. HMRC do check on traders accounts, and you my friend will be prosecuted for fraud.

This would be illegal i.e fraudulent. If he ever got investigated and this invoice came to light, you could be prosecuted for vat fraud. Do not do it.

You don't have a vat registration number so if anyone was to do a check on you, it would be you who would be held responsible.Don't get involved in this blokes dodgy dealings

off course it is illegal because the real cost if VAT was applicable would be

£3,000 + VAT

He is obviously a scammer and it would make your annual accounts wrong

He is trying it on and also not up to date with VAT rates.

You can only charge VAT if you, the trader are VAT registered - and anyway the VAT reate is 15%!

I would report him (anonymously) to HMC as he must have tried this on before.