ChatterBank30 mins ago
Payroll Company Charging Me Vat On Own Workers
16 Answers
Hi I’m a VAT reg ltd company and using a payroll company to pay my self employed workers, there charging me 20% VAT Invoice the company I do bussiness with but cont understand why I’m paying all VAT I’m receiving to payroll, they said if I get +2000 and pay 1600 to them it’ll mean I pay taxman 400? Seems there just skimming my company’s VAT any thought please I’m in construction.
Answers
With many payroll companies the legal position is that the self- employed workers are contracted by the payroll company (rather than by the end employer) and the payroll company then provides those staff to the end employer. Under such circumstance s, VAT is payable on the FULL costs of the 'considerati on' paid to the payroll company by the end employer. See...
18:24 Mon 11th Jun 2018
Hi I’ll send them excel spreadsheet of many hours and rates of guys working for me on a Monday, on Thursday they’d invoice me say 5000+vat 6000 and I’d pay them on Friday morning, there my accountant also so I’m unsure, as said before +2000 -1600 to them -400 tax man was there explanation to how VAT works
With many payroll companies the legal position is that the self-employed workers are contracted by the payroll company (rather than by the end employer) and the payroll company then provides those staff to the end employer.
Under such circumstances, VAT is payable on the FULL costs of the 'consideration' paid to the payroll company by the end employer.
See '2.3 Value' here:
https:/ /www.go v.uk/go vernmen t/publi cations /vat-no tice-70 034-sta ff/vat- notice- 70034-s taff
Under such circumstances, VAT is payable on the FULL costs of the 'consideration' paid to the payroll company by the end employer.
See '2.3 Value' here:
https:/
I’ll explain better, I have 10 guys working for me each one is self employed, I’ll pay payroll what there due, payroll then takes cis off them and pays them, for example 10 each making 500 a week I’ll pay 5000+vat to payroll, payroll deals with guys tax etc, each guy get payslip, I’m struggling why there taking 20%
Any thoughts or experience with this ?
https:/ /quickb ooks.in tuit.co m/uk/ci s/?cid= ppc_G_N B_Broad _CIS_BM M_+cis- +payrol l_txt
https:/
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