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VAT charges on recruitment agency fee

VAT charging on agency fee

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Hi, I have just started a recruitment agency, and not sure about how to charge VAT.  For example I should do an invoice for £1000 of which £100 is my fee (my income) and £900 is for the driver I am paying (creditor) - do I have to charge VAT for the whole amount of £1000?  or just for the £100 which is normally my income. I would say for the £100 only, please let me kow if I am right. 

Many thanks.

A

Replies (10)

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By Sandnickel
23rd Nov 2021 15:07

You charge it on the full £1000. If the driver is VAT registered (assuming self employed) you can reclaim his VAT).

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By David Ex
23rd Nov 2021 15:13

And if you don’t yet have an accountant, this would be a very good time to appoint one.

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Replying to David Ex:
paddle steamer
By DJKL
23rd Nov 2021 15:34

A very, very, very good time.

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Replying to David Ex:
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By Paul Crowley
23rd Nov 2021 15:56

+1

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By Paul Crowley
23rd Nov 2021 15:58

Recruitment agency or employment agency?

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Replying to Paul Crowley:
Jason Croke
By Jason Croke
23rd Nov 2021 16:30

Good question, recruitment agencies don't usually pay the salary of the worker.

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By gillybean04
23rd Nov 2021 16:32

Are you VAT registered?

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RLI
By lionofludesch
23rd Nov 2021 16:39

You know what's coming, don't you?

Who is supplying what to whom?

What does the contract say?

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Replying to lionofludesch:
chips_at_mattersey
By Les Howard
23rd Nov 2021 16:57

lionofludesch wrote:

You know what's coming, don't you?

Who is supplying what to whom?

What does the contract say?

Do you have written contracts? The VAT follows the contractual position.

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By Leywood
23rd Nov 2021 21:08

Oh dear

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