My client has signed a deal with a TV company to be a feature in a show; obviously can't say too much about that, except to say that the client is a normal trading business, so TV involvement is not in the normal course of what they do.
First I knew about this was half an hour ago, everything is signed up and a fee agreed. Now they've received an up-front instalment, they're wondering about the VAT treatment.
Does anyone know if there is any reason why this wouldn't be standard rated?
Replies (4)
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Standard rated
I would expect the fee to be standard rated. For some reason a certain broadcasting corporation (whom I shall not name) have a bizarre system of paying the fee and then requiring you to invoice separately for the VAT on it. (They then lose the invoice / query it for sundry reasons / fail to pay, etc. I suppose they are just being careful with the licence payers' money!)
David
Self-Billing
Actually if your client is a bit sluggish in bookkeeping you can get the Beeb (oops, gave it away) to do them a self-billing invoice. You just need to provide a copy of the registration certificate and bang it in to the Contributor Payments section, along with a signed reguest form. And yes, no earthly reason not to be Standard Rate.
Take two
Just a thought - is the person contracted to the TV company a 'person' who is registered for VAT?
I wonder if the TV star is perhaps a director of a company which is registered for VAT and if so whether the supply to the TV company is not from a VAT registered business?
An idle thought . . .
David