TV money and VAT

TV money and VAT

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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?

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David Winch
By David Winch
13th Jun 2011 14:53

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

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By MarionMorrison
13th Jun 2011 15:04

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.

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By adam.arca
13th Jun 2011 17:47

Many thanks..

..for both replies.

Wasn't sure I'd get an answer to this one, but I've actually ended up with helpful info above and beyond what I asked.

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David Winch
By David Winch
13th Jun 2011 22:27

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

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