Confused here. Apparently, if you do it this way, you have to charge vat.
At the moment, using normal umbrella, I just fill in timesheet, umbrella processes it and lumps into my current account.
I'm looking into payroll service instead, but, apparently, vat comes into it. OK say its £100 a day, I invoice £500+VAT = £600. Paystream get £600 off agency, deduct employer NI, employee NI, tax etc (call it £250). Do they then pay £250 (left after tax etc) PLUS the initial vat of £100 into company account? £250 of which I can pay to myself?
At the moment, using normal umbrella, I just fill in timesheet, umbrella processes it and lumps into my current account.
I'm looking into payroll service instead, but, apparently, vat comes into it. OK say its £100 a day, I invoice £500+VAT = £600. Paystream get £600 off agency, deduct employer NI, employee NI, tax etc (call it £250). Do they then pay £250 (left after tax etc) PLUS the initial vat of £100 into company account? £250 of which I can pay to myself?
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