Charging VAT and Umbrella Companies

[cheersthanksbye]

I am working through an umbrella company at the moment and have just had my latest payslip through.

My umbrella company have invoiced my agency for my daily rate not including VAT. However, my agency have paid my umbrella my daily rate PLUS VAT. On my payslip, I have only received my rate without VAT!

So it seems my Umbrella Company have kept the VAT to themselves.

Don’t really understand what the correct procedure is here:

1)&nbsp &nbsp &nbsp &nbsp As a contractor using an umbrella, I am not VAT registered and my agency should not be paying me VAT right?
2)&nbsp &nbsp &nbsp &nbsp But even though they have paid my rate +VAT on this occasion and my umbrella have kept their hands on it, who does the VAT amount now belong too?

If anyone could drop me some advice on how to handle this, I would be most grateful.

[EqualOpportunities]

The VAT's not yours - that belongs to C&E. The fact that your umbrella need/need not charge VAT isn't your concern - it's to do with their turnover... Relax, you're not being shafted

[Mordac]

But even though they have paid my rate +VAT on this occasion and my umbrella have kept their hands on it, who does the VAT amount now belong too?

This is a wind-up, right? If it isn't, then you are far too stupid to work in IT. I'd almost go so far as to suggest you're too stupid to be allowed to live, but I'm feeling nice today, so I won't. :rolleyes

[Ardesco]

I'll bet he has 15 years experiance in .NET and an MCSE as well

[planetit]

If you worked through your own Ltd company, you would get to keep some of that lovely lolly.

[SupremeSpod]

This is a wind-up, right? If it isn't, then you are far too stupid to work in IT. I'd almost go so far as to suggest you're too stupid to be allowed to live, but I'm feeling nice today, so I won't.

Beautiful post that Mordy! Almost perfect!

I'd have split it into two...

This is a wind-up, right? If it isn't, then you are far too stupid to work in IT.

Then later as a retort...

I'd almost go so far as to suggest you're too stupid to be allowed to live, but I'm feeling nice today, so I won't.

[cheersthanksbye]

I agree!

I agree totally - I have no idea what I am doing!

I just ended up on a contract and find if you smile alot and please the right people you can blag it!

Cheers for the comments re: VAT.

[Mordac]

Beautiful post that Mordy! Almost perfect!

Aaahh, another satisfied customer.

I just ended up on a contract and find if you smile alot and please the right people you can blag it!

Just try and blag it with Customs and the IR and see how far you get. :rolleyes

[fiddleabout]

Better watch out Mordac - you'll be turning into a miserable old bastard just like your "dad" if you keep on like this.

[Mordac]

you'll be turning into a miserable old bastard just like your "dad" if you keep on like this.

Too late, I think I already have...