I have a friend who takes commissions on contracts by finding the right suppliers and following up with the admin staff as he got plenty of networks in that field.
The contracts value are more than £100k and his commission is about %5 and the rest for the suppliers in order to get the work done, he is not VAT registered and most of his suppliers are not.
My question is, 1- will he be liable to register for VAT and charge it to the suppliers for the whole contract amount? or his part is only to deal with his %5 commission.
2-How he will determine his Turnover, and how he will account for the commission and the contract value?