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VAT query

Posted: Tue Jul 24, 2018 3:02 pm
by jayjayw87ulh
Hi I will shortly be working for a firm which charges VAT to its clients. I will work on a self employed basis and take a percentage from each client fee. I understand if operate as a limited company I will have to pay VAT if I reach the threshold but this effectively means we will be paying VAT twice, is there a more tax efficient way to operate? so that we do not effectively pay VAT twice

Re: VAT query

Posted: Tue Jul 24, 2018 4:28 pm
by robbob
I understand if operate as a limited company I will have to pay VAT if I reach the threshold but this effectively means we will be paying VAT twice,
Once you go vat registered you will bill your client with vat which they can reclaim so practicably speaking vat isn't paid across twice. You pay vat on your income and your customer pays vat on his margin only.