agency screwing me on VAT

[TykeMerc]

only just registered as was below the threshold (and still will be for a few months),

invoices state "THE VAT SHOWN IS YOUR OUTPUT TAX DUE TO HM REVENUE AND CUSTOMS" but no VAT or deductions are shown

will speak to the accountant tomorrow and find out where i stand

It's clear that you don't understand what VAT is and that's why you feel the agency is screwing you on VAT. There are a few points you have to understand.

1. Until you register for VAT all invoices you create (from a self bill or your own system) must NOT have VAT added.
2. The agency will be VAT registered, they will invoice their clients and add VAT to the net amount. The agency will then PAY that VAT amount to HMRC less any VAT they are charged which in your case was nil. They get no actual benefit from the VAT so there's no element of you being "screwed".
3. Now you're registered for VAT all invoices from the date of registration will need VAT clearly shown however the VAT money isn't yours, it belongs to HMRC less any amount you reclaim by expenses that include VAT. You pay that to HMRC every quarter so in effect you're a tax collector. If you've gone on the Fixed Rate Scheme it's slightly different, but get your accountant to explain it.
4. You need to get your accountant to explain VAT to you as it's clear you've no idea what it means to be VAT registered.

[d000hg]

Well everyone knows VAT-registration is just a neat way to bring in an extra 20% more money.

[MarillionFan]

Well everyone knows VAT-registration is just a neat way to bring in an extra 20% more money.

It is if you're an Aussie.

[SueEllen]

It is if you're an Aussie.

Only works if your a Saffer now. HMRC is friendly with the Aussie taxman.