Should I Charge Customers VAT Before Receiving My VAT Number?

Question

I am very close to surpassing the VAT threshold. I’ve currently taken £80,525, and my next payment is due on Thursday.
I told my client that I will have to charge them VAT on the next payment, which is £5,000, so with VAT, it’s £6k.
However, I’ve seen on the UK government website that I can’t charge VAT until I have my VAT number (https://www.gov.uk/vat-registration), which can take up to a month to arrive.
Does this mean that I am prematurely charging VAT and that I don’t have to charge my client VAT on the £5k that they will owe me? Therefore can I actually say to them that the extra £1k can be spent on the project paying me to do more work, rather than giving that £1k to HMRC?
Hopefully this makes sense, thanks in advance!

hmallett · Accepted Answer

The page you linked to says that while you wait for your VAT number:

You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period.
You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue
the invoices showing the VAT.

You are going to have to pay the VAT for your sales while you wait for your VAT number, however you are not to issue an invoice with VAT on it.
In your scenario, you will need to issue an invoice to your customer for £6000. Then when you get your VAT number, reissue the invoice as a £5000 invoice with £1000 of VAT added.

Should I Charge Customers VAT Before Receiving My VAT Number?

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