Hi all
Some advice if possible please.
I am finding my way back into agency driving over the next month. I had a lot of experience driving in my early 20s before joining the Army, mainly manual C+E vehicles, tankers, rope and sheeting etc.
Until recently I have been running my own business and trade quietens down in the winter but I need to keep my income. So to see me through the frugal months I thought agency work would see me right.
I see that a lot of people use Ltd Companies to claim lower tax etc.
Happy to do that, however do people ever do it being Vat registered, like owner drivers etc?
If you put a bill in for say £15 an hour as a Ltd Company, do agencies let you add the Vat to the bill if you are Vat registered?
One of the agencies I approached said about going self employed as a ltd company. it sounded very much like being payed by an umbrella company for warehouse work.
I got caught before with an umbrella company. no holiday pay no nothing ended up paying 2 lots of stamp both employees and employers contributions and paying the umbrella company 15 quid a week for paying me. Only way you could get holiday pay was if you signed up and they deducted it from your earnings after tax (which you then paid tax on again when you claimed it) In my opinion its a huge con and not worth the extra pound or two an hour. If the agency insist that you have to work as a ltd company I would think long and hard but that’s just my two pence worth
coop
If you get the same accountant as the Coles driver who was buying a packet of ■■■■ at Watford Gap last night then you can put 20 B&H on your VAT return as according to him that is all above board
weewulliewinkie:
if you are vat registered then you should be charging vat on all your invoices for any sevices you provide
I worked with a ■■■■■■■■■■ who was chuffed to bits at being able to claim vat on her whips, handcuffs, stilletos and tatoos. Bet the taxman loved sorting THAT out!
weewulliewinkie:
if you are vat registered then you should be charging vat on all your invoices for any sevices you provide
I worked with a ■■■■■■■■■■ who was chuffed to bits at being able to claim vat on her whips, handcuffs, stilletos and tatoos. Bet the taxman loved sorting THAT out!
Wonder if ago offered payment in kind?
.
.
Errr, in cruel?
It depends on how much turnover you have, currently it’s £85000, if you make more than, or expect to make that amount you must register for VAT. So, if you earn that kind of money, you must charge VAT regardless. I can’t see why an agency would have issues with you being self employed and charging VAT, they charge when they put their invoices in.
weewulliewinkie:
if you are vat registered then you should be charging vat on all your invoices for any sevices you provide
I worked with a ■■■■■■■■■■ who was chuffed to bits at being able to claim vat on her whips, handcuffs, stilletos and tatoos. Bet the taxman loved sorting THAT out!
Wonder if ago offered payment in kind?
.
.
Errr, in cruel?
Probably one of her customers (victims) as a tax man [emoji23][emoji23][emoji23][emoji23][emoji23]
Hi guys
Thank you very much for your responses, although I am not earning £85,000 a year - I really wish I was, the company may have turnover above that in the next 6 - 12 months.
I can’t see why an agency would get upset with that, just wanted to know if anyone else had been in that situation.
■■■■■■■■■■ you say…
Cheers
An agency will not bad an eyelid at being charged VAT because as I’m sure you know any payments they make that include VAT will be entered on their next VAT return, therefore it’s kind of “free” money to them and will be used to reduce their VAT burden that they charge clients for their services.
When I was Ltd Co I did all my own bookkeeping and invoicing.
I was full fat VAT (not the small business scheme rate) and the agency didn’t bat an eyelid when I invoiced them £’s + VAT
iirc you will have to tell the agency your VAT number before working for them, and include the number on the bottom of the invoice. Mine used to include the company address, company number and VAT number at the bottom
Btw Business VAT is a joke as companies only pass the cost down the food chain, or claim it back. It’s only joe public who actually bear the cost of VAT because they can’t claim it back.
peirre:
Btw Business VAT is a joke as companies only pass the cost down the food chain, or claim it back. It’s only joe public who actually bear the cost of VAT because they can’t claim it back.
I wish… as a manufacturer selling to the trade and public almost every penny we charge in VAT is paid to the goverment as we claim back very little. We are in fact just used as tax collectors without a wage!
DBATOM:
I wish… as a manufacturer selling to the trade and public almost every penny we charge in VAT is paid to the goverment as we claim back very little. We are in fact just used as tax collectors without a wage!
The only way that can happen is if the majority of your suppliers are not VAT registered which I find it hard to believe given you’re a manufacturer.
DBATOM:
I wish… as a manufacturer selling to the trade and public almost every penny we charge in VAT is paid to the goverment as we claim back very little. We are in fact just used as tax collectors without a wage!
The only way that can happen is if the majority of your suppliers are not VAT registered which I find it hard to believe given you’re a manufacturer.
It happens because labour is the biggest cost of manufacturing. Hence our claims on material costs are low compared to how much we collect for HMRC. Come to think about it, we need a lower minimum wage in this country
Mazzer2:
If you get the same accountant as the Coles driver who was buying a packet of ■■■■ at Watford Gap last night then you can put 20 B&H on your VAT return as according to him that is all above board
It’s always important to use a decent accountant. The goal posts keep moving and you need someone who can keep up with the rules.
Putting a packet of ■■■■ on your vat return would be the quickest way to get your local HMRC inspector to give you a visit. If he was telling you the truth he must be pretty dim.
I have a VAT registered business that I use to do contracting work as a Consultant Engineer among other things. I invoice for VAT every time, never questioned.
My advice, always speak to your accountant as there are other pitfalls.
Always remember! The HMRC is a Legal Body of Accountants that exists to support other accountants, get it wrong and you will always suffer!
