VAT Registration - Additional 'Supplying Staff' Questions VAT Registration - Additional 'Supplying Staff' Questions
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  1. #1

    Nervous Newbie


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    Jan 2011
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    Question VAT Registration - Additional 'Supplying Staff' Questions

    Hi,

    I have just applied to become VAT registered, but R&C have written to me asking additional questions which I am a little confused about.

    They've asked some basic information which is fine, but also given me a questionnaire to answer about additional workers in my company - which is confusing me slightly.

    The first question is 'do you supply staff/workers to customers?'. And then it goes on to ask questions about them if so.

    As the sole employee of my limited company, as a contractor, I'm a little bit confused by the question. Does the question include me? Or is it referring to other people excluding me?

    Obviously I supply 'myself' to customers... does that mean I do supply staff/workers to customers? Or should I only answer yes if I supply other staff in addition to myself?

    Hopefully someone else who has applied will be able to help here! .

    Thanks

  2. #2

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    Clare@InTouch's Avatar
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    Default

    Only answer yes if you supply staff other than yourself. You're not technically 'supplying staff' - you're supplying consultancy services.

    The question is more aimed at identifying staff agencies.


    From HMRC:

    If your company supplies services, such as construction services, to another person but your staff continue to operate under your own direction, this is not a supply of staff, but is a supply of those services.

    HM Revenue & Customs

  3. #3

    Default

    The reason being is that a few years ago they changed teh VAT rules so that agencies only had to put VAT on their commission. Not all of the wages. Now its on all the wages which means banks (can't reclaim vat) get shafted into paying more VAT.

  4. #4

    Nervous Newbie


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    Jan 2011
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    That's what I suspected, but I just wanted to gain clarification from those in the same boat.

    Thanks for your replies both .

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