So I think its finally dawned on IPSE's management

[eek]

Surely, once you are all on the agency or umbrella payroll, there will be no VAT to pay to the employee? When I was an employee of VeryBigCo PLC, they never paid me any VAT with my salary?

True but remember

1. VAT is different.
2. Your company is still invoicing the agency £2000 a week say. The fact that the agency is only paying you £1000 a week after tax is deducted / withheld is irrelevant to the Customs and Excise side of HMRC.

I think the issue is that people assume that HMRC is a single entity when it really isn't. It's 2 separate entities (1) Customs and Excise and (2) HMRC and you need to treat them as that.

[DaveB]

True but remember

1. VAT is different.
2. Your company is still invoicing the agency £2000 a week say. The fact that the agency is only paying you £1000 a week after tax is deducted / withheld is irrelevant to the Customs and Excise side of HMRC.

I think the issue is that people assume that HMRC is a single entity when it really isn't. It's 2 separate entities (1) Customs and Excise and (2) HMRC and you need to treat them as that.

If you are still operating through a Ltd. what will need to happen is that the VAT component of the invoice needs to be treated separately so that your co. can then pay it to HMRC. Otherwise you are going to end up seriously out of pocket.

Brolly users won't be affected by this as you are an employee of the brolly and VAT is dealt with by them.

[cojak]

I think the issue is that people assume that HMRC is a single entity when it really isn't. It's 2 separate entities (1) Customs and Excise (VAT) and (2) Inland Revenue (Tax) and you need to treat them as that.

FTFY.

[Fred Bloggs]

True but remember

1. VAT is different.
2. Your company is still invoicing the agency £2000 a week say. The fact that the agency is only paying you £1000 a week after tax is deducted / withheld is irrelevant to the Customs and Excise side of HMRC.

I think the issue is that people assume that HMRC is a single entity when it really isn't. It's 2 separate entities (1) Customs and Excise and (2) HMRC and you need to treat them as that.

Come on, you aren't seriously suggesting you want to be an employee of the brolly/agency AND still pretend to be a business? You can't even claim flat rate VAT or expenses any more. How many people are going to do this? Seriously?

[seeourbee]

They certainly don't need their expensive offices right in the heart of Westminster. No need for that at all. All it says to me is that they like to 'live the life'.

[Fred Bloggs]

They certainly don't need their expensive offices right in the heart of Westminster. No need for that at all. All it says to me is that they like to 'live the life'.

Hang on a minute, now you're questioning the strategy to be at the very heart of politics and enjoy the hospitality of number 10. To be a respectable lobbyist rather than a pain in the bum. You just can't do that. The strategy has clearly failed/is failing, but never mind.

[seeourbee]

They need to speak to 1 Parliament St not No.10

[DaveB]

They need to speak to 100 Parliament St not No.10

FTFY.

The treasury building that houses the HMRC sty is at 100 Parliament St.

[Fred Bloggs]

FTFY.

The treasury building that houses the HMRC sty is at 100 Parliament St.

Maybe the tea and biccies are not so good there eh?

[seeourbee]

Bloody iPhone !!