like to be anonymous
Member Since: 14th May 2014
14th Oct 2019
Thanks all for the replies. so here is an example.
so, the bureau (yes typo previously) charged the end user for temporary labour, including VAT and paid the temporary staff and all PAYE and NI to HMRC. Amount left is the margin. In this case £9,456. the bureau then deducts their fee of £1567.34+ £313.48 VAT. This leaves £7,575.18 which they say is the net referrer fee and the amount to which they apply VAT of £1,515.04. My argument is, that the referral fee should really be £9456 - 1567.34 = £7888.66 and VAT should be applied to that. The contract is pretty vague, and simply refers to the clients invoice, less payroll costs (incl payroll taxes and VAT charged to the end user) less the bureau fees which are said to be a percentage of what is invoiced to the end user, no mention of VAT. hope this helps to clarify.
29th Jul 2019
me too. where do we go from here?
22nd Jul 2019
Thanks Les, much appreciated. The cynic in me wonders if this is now a deliberate tactic of HMRC to delete as us authorised agents just prior to tribunal. the pragmatist in me thinks they aren't clever enough! :-)
14th May 2014
Not at all, and no I would never maintain it was all allowable. point is not that there will be repurcussions, but what are they likely to be? Yes I realise that prompted disclosure may mean 15-30% of the tax overclaimed but are there any other repurcussions? is it likely they will want to undertake a full investigation for example.
14th May 2014
many thanks for the reply,
many thanks for the reply, would like to do as advised, and was my original plan but unsure of the repercussions. would like to know anyone elses experiences before I advise the client of this course of action.