Originally posted by eek
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Previously on "So I think its finally dawned on IPSE's management"
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Originally posted by Fred Bloggs View PostCome 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?
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Originally posted by eek View PostAt best VAT is utterly irrelevant to any IR35 argument. At worst it leaves the rest of the consultation response being treated as ill-informed gibberish...
Looking at the contempt with which IPSE's arguments were listened to I suspect the latter is what happened.
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Originally posted by DaveB View PostFTFY.
The treasury building that houses the HMRC sty is at 100 Parliament St.
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Originally posted by seeourbee View PostThey 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'.
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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'.
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Originally posted by eek View PostTrue but remember
- VAT is different.
- 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.
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Originally posted by eek View PostTrue but remember
- VAT is different.
- 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.
Brolly users won't be affected by this as you are an employee of the brolly and VAT is dealt with by them.
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Originally posted by Fred Bloggs View PostSurely, 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?
- VAT is different.
- 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.
Leave a comment:
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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?
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Originally posted by Fred Bloggs View PostI know employment taxes in the UK are insidious and extremely high, but since when did an employer pay VAT on an employee's salary?
Also the logic goes - Local authority pays £100 VAT to Agency, Agency pays £80 VAT to contractor - we pay £80 to HMRC, Agency pays £20 to HMRC the local authority claims the £100 back from HMRC see https://www.gov.uk/government/public...ess-activities
Hence in this world its a accounting issue more than actual revenue....
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