Government Contracts

[SantaClaus]

yeah blud,

dat is not true and ting.

government contracts hav 2 pay da same tax as anyone else innit

tl

Wats wid da Ali G?

[BolshieBastard]

Hi let me start by sayin i'm a total newbie

I heard a rumour and didnt get all the information if any one can fill in the gaps or confirm what i heard that be great.

My manager had a contract via un umbrella company he was told that Govenrment contracts had lower VAT/TAX ? applied to them he put this to his umbrella company and they responded by saying they keep the differance and wouldnt pass onto him.

As a result he started his own LTD and pocketed the differance.

He has now left where i work but i wish i had got more info from him with regards to above as im just settin up my LTD and the info could be useful

Longshot but anyone lol

Yes and if you dont pay the pesky VAT \ TAX and keep it all for yourself, you're even more quids in!

Everyone's doing it dont ya know. HMRC never check up on this either!

[Gonzo]

Two things:

1. We can tell that you are a newbie from your post count that appears next to your post you don't need to tell us. The general rule of thumb here is that you don't apologise for yourself, and if you feel the need to then think again about what you are posting.

2. There are ways that you can keep all the VAT that you collect and pay nothing to HMRC. However this does involve having no permanent ties in the UK and being prepared to leave and never come back at the first hint that you are about to be found out.

hth

OK. Now the helpful answer:

There is such a thing as the flat rate VAT scheme where the VAT to hand over to HMRC is less than the amount collected from the end clients.

You might be getting confused with that - in some circumstances it is worthwhile, in other circumstances it is most definately not. But this is nothing whatsoever to do with having a Government client. It is applicable whoever the client is.

[thunderlizard]

yeah blud,

dat is not true and ting.

government contracts hav 2 pay da same tax as anyone else innit

tl

[Beefy198]

Absolute rubbish.

[TykeMerc]

As much as I despise people using lol as a punctuation mark (please don't do it).

The rumour you heard is utter tripe.

[BrilloPad]

This sounds like total nonsense to me.

[Contractorxxx]

Hi let me start by sayin i'm a total newbie

I heard a rumour and didnt get all the information if any one can fill in the gaps or confirm what i heard that be great.

My manager had a contract via un umbrella company he was told that Govenrment contracts had lower VAT/TAX ? applied to them he put this to his umbrella company and they responded by saying they keep the differance and wouldnt pass onto him.

As a result he started his own LTD and pocketed the differance.

He has now left where i work but i wish i had got more info from him with regards to above as im just settin up my LTD and the info could be useful

Longshot but anyone lol