I wonder if there is more to this as there usually is with quesitons like this.
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Are Investment Banks VAT exempt?
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Originally posted by northernladuk View PostI wonder if there is more to this as there usually is with quesitons like this.
Never worked for an investment bank, but last time I checked, retail banks can't reclaim VAT. You still charge it to them though and they still have to pay it.Comment
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Originally posted by sthotakura View PostHi,
I am currently in a perm software developer position and got a contract offer from an investment bank and they say I cannot charge them VAT because they are VAT exempt. They also say I will have to use Limited company to provide them with services and I cannot go via Umbrella company/PAYE.
Is this the normal practice with investment banks? Please advise.
Thanks in advance.
Their argument was that the services that the contractors Limited Companies were providing were exempt services, NOT the provision of staff.
I think they backed off in the end when a number of contractors contacted HMRC directly for advice.
I've done a lot of work in Financial Services over the past couple of years and never come across that argument since.
I think the relevant HMRC bit is notice 700/34, but google might help with more ideas.Comment
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Charity VAT exemption certificates
Many moons ago I worked for the University of Edinburgh. Since universities have charity status, we had VAT exemption. But, we *had* to provide our exemption certificate to suppliers before they could sell us products or services with zero-rate VAT.
HM Revenue & Customs: Charging VAT if you make supplies to charities
To the OP: Ask to see their exemption certificate (which it sounds like an IB wouldn't have) before yourco can give them VAT relief.Comment
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Thanks All
Thanks All for your responses, I spoke with the recruiter again and he now clarified that I can indeed charge the VAT.Comment
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Originally posted by sthotakura View PostI spoke with the recruiter again and he now clarified that I can indeed charge the VAT.
For their next trick they will try to tell you that the rate is inclusive of VAT (no it's not, rates are always ex-vat).Free advice and opinions - refunds are available if you are not 100% satisfied.Comment
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Originally posted by sthotakura View PostThanks All for your responses, I spoke with the recruiter again and he now clarified that I can indeed charge the VAT.Comment
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