VAT advice for new co, subcontractors

[william12]

Dear Anyone,

Please can you help.

I am in a position to provide 4 employees through a limited company to a UK based company. They will be working as maintenance/builders.
Their Basic wage will be circa £30,000 pa plus overtime.

So, I will be collecting £33,000 per employee £33,000 X 4 = 132,000
However we will be paying out £30,000 X 4 = £120,000

Profit £12,000.

My problem is that I have an hourly rate that the company is being paid, I have scope to make a couple of £ per hour, however if I have to charge 20% Vat, there is no profit?!
There are no overheads to claim VAT back. So how is this right???

Please can any one give me some advice.

[les35]

If your only cost is salaries, then there is no input tax.
On the profit side, you should do your arithmetic. Is £2 per hour per employee enough? And, remember, you add VAT to the rate you charge your customer.