Hi
I am currently working with a client whom I have contract with an agency. The client had asked me for some additional resources which I agreed to supply them.
Now, those resources are not employees of my company, rather I will use another contractors with some margin for me and present it to the client. This is my scenario and have following questions.
1. First thing, is this something legal that I am not into any trouble? Can I use another contractor where he will work for my client although the contract will be between him and my company and contract between my company and the client. Am i correct in saying that he will be my vendor?
2.I am under flat rate scheme? This means I can't claim the VAT back for the invoice i am paying my vendor? The margin is so little that most of them will go back in VAT to my vendor? Is there any other way to overcome this? Although, at the same time i am saving 5.5% VAT when i receive it from my client.
3.Since my turnover or sales is going to be both my effort of time as well as my vendor effort of time, my turnover will go beyond 100k. Is this anyway create any problems in my VAT or any other effects on my company since most of them will go away as expenses paying to vendor.
Please advise as I am looking to ascertain whether this will be any way profitable to me.
Regards
Silentbull
I am currently working with a client whom I have contract with an agency. The client had asked me for some additional resources which I agreed to supply them.
Now, those resources are not employees of my company, rather I will use another contractors with some margin for me and present it to the client. This is my scenario and have following questions.
1. First thing, is this something legal that I am not into any trouble? Can I use another contractor where he will work for my client although the contract will be between him and my company and contract between my company and the client. Am i correct in saying that he will be my vendor?
2.I am under flat rate scheme? This means I can't claim the VAT back for the invoice i am paying my vendor? The margin is so little that most of them will go back in VAT to my vendor? Is there any other way to overcome this? Although, at the same time i am saving 5.5% VAT when i receive it from my client.
3.Since my turnover or sales is going to be both my effort of time as well as my vendor effort of time, my turnover will go beyond 100k. Is this anyway create any problems in my VAT or any other effects on my company since most of them will go away as expenses paying to vendor.
Please advise as I am looking to ascertain whether this will be any way profitable to me.
Regards
Silentbull
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