Vat Invoices please

[#1]

Hi,

I've emailed with no response,  and the chat function is off line so hopefully 3rd time lucky.

The recent change in invoice format to 'non vat' is causing me difficulties claiming expenses with my employer. Please can I receive VAT invoices in the future ,plus the old  ones back dated to the change.

It frustrating to watch the PlusNet adds talking about brilliant support when even contacting you is non trivial...

Thanks

David

[#2]

There's a thread here https://community.plus.net/t5/My-Account-Billing/New-Invoice-Changes/td-p/1555979/page/9 which outlines the position on the availablity of VAT invoices for Residential accounts.

[#3]

OK, I've skimmed the thread and it seems that the answer is no, although there is no reason it can't be yes.

I'm guessing the cost of upgrading to a business account is more than the VAT element in the invoice so I'm unlikely to be able to get that past the accounts people.

Time to start looking for a new ISP I think.   Any recommendations ?

[#4]

I recently moved from a Plusnet residential ADSL account to a Plusnet business ADSL account - you get the current new customer deals, it cut my monthly cost from £29.98 to £20.40 inc VAT on a 12 month deal, so it isn't necessarily more expensive!

With a business account you should get VAT invoices, although I haven't yet got  an invoice for the initial connection fee and first months cost even though that was taken 6 weeks ago. My next bill is due on 8th October! Your mileage may vary. 

[#5]

The Plusnet invoice meets all the requirements of HMRC https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include

The "note that this is not a VAT invoice" to my mind on the invoice may not invalidate the invoice since it meets all HMRC requirements. I have no legal qualifications, my reply is only my interpretation.

[#6]

mole1 - yes, I think they have tweaked the format a little from the original form IIFC it now includes their VAT number.

[#7]

Hi David.

Apologies for the very delayed staff response.

As of 1st September 2018 we no longer offer VAT invoices for residential customers, as our services are only for personal use in the UK. However, if you’d like VAT invoices please sign up a Business account where these are available as standard.

[#8]

Hi Gandalf,

Sorry to hijack a thread, but I had a discussion with a colleague recently, and this thread relates to that.

Is it the case that Plusnet no longer provide VAT invoices for Residential Customers, or Residential Accounts?

I don't believe that Plusnet's T&Cs prohibit a business from being the account holder for a residential account - I know the T&Cs don't allow business use of a residential account (or even working from home).

However, if a business can be the account holder of a residential account, for instance where a business provides broadband as a perk for an employee (which in some cases can be tax and NI efficient) there is a conflict between the legal requirement to provide a VAT invoice to a VAT registered business, and Plusnet not providing a VAT invoice.

Thoughts?

[#9]

Hi @corringham,

So yes to clarify as of last year account types that fell under the residential umbrella can no longer be provided with VAT invoices. We stopped providing them, and any accounts that were receiving them (when there was a manual option to allow it on a case by case basis) were reverted when the option to allow it was completely removed.

The Ts+Cs do state that any residential account being used for business purposes would be breaking the contractual agreement, but a residential customer can sign up to a business account should they deem the benefits (and the price increase) beneficial, and not actually require to be a business. Business accounts receive VAT invoices as standard. 

If a business offers a benefit of providing staff members a broadband subscription (for example if the staff was to use it for business use) then they would be advised to set up a business account for them. If it was a benefit that was provided for personal use then the account wouldn't be supplied with a VAT invoice.

Plusnet, for example, supply staff with the option of taking up broadband and phone services as a benefit, and these are classed as residential services and aren't provided VAT invoices.

If a business had a service with us and wanted to start supplying their staff with a benefit we'd likely discuss this individually with the business and probably suggest our Partner or Dealer services.

[#10]

Thanks @JOLO, that's a good summary.

If it was a benefit that was provided for personal use then the account wouldn't be supplied with a VAT invoice.

But in that case the customer is still the VAT registered business, and so according to legislation have to be provided with a VAT invoice. It isn't the service that determines the requirement for a VAT invoice, it is the status of the customer. I no longer have a VAT registered business, otherwise I'd try this just for the fun of it 😉

a residential customer can sign up to a business account should they deem the benefits (and the price increase) beneficial

I have done this, because I work from home full time and that is against the terms of the residential service. I managed to get the business service at lower cost than the residential service. Of course that means I can't get the Plusnet TV service, but since I can't get FTTC I wouldn't be able to anyway.

The Partner or Dealer services is something I hadn't considered, and could be a way around the issue.

[#11]

I have just got off the phone with HMRC regarding Plusnets refusal to issue VAT invoices.

What they said is that there is absolutely no problem is claiming the VAT back even if you don't have a VAT invoice. What is important is that you can provide evidence that you have been provided with a service and that  you have been changed VAT for that service.

The non-VAT invoice says that VAT has been charged on the calls and Plusnet is are large company (part of BT) who will be VAT registered. That will provide enough proof for any VAT inspector that you have been charged VAT which is all that matters when it comes to reclaiming it.

Their VAT Registration No. is 245719348 which you can write on the bill if you like but it is not necessary.

[#12]

Well done finding out that information.

Don't tell Plusnet!

Hope you weren't ages holding on the phone.

[#13]

That same VAT number is on my VAT invoices.

Did you mention "please note that this is not a VAT invoice" printed on their bill statement?

[#14]

Yes I did and they said it was not relevant. What is important is that they have said VAT is charged and you can demonstrate that they are VAT registered

[#15]

This is in several threads now, but I think what you have been told only applies for amounts not exceeding £25.

If you check the HMRC website it is very clear that you need VAT invoices for any amount over £25, and that

You cannot reclaim VAT using an invalid invoice, pro-forma invoice, statement or delivery note.

So Plusnet's statement really can't be used to reclaim VAT unless it is no more than £25.