Removal of right to reclaim VAT

[hugebrain]

http://www.humanresourcesmagazine.co...e-impact-jobs/

Do they mean us? Are the IR35 victims (contractors who work at banks in particular) suddenly going to get 15% more expensive?

I presume it doesn't apply to business-to-business type contracts the professionals use?

I'm probably behind on this - if so just call me names and point me to the relevant place where it has already been discussed.

[NotAllThere]

It doesn't apply to contractors; it applies to temps.

[deckster]

It doesn't apply to contractors; it applies to temps.

But HMRC have been trying for years to claim that contractors and temps are the same thing. Who's to say they won't say the same here?

[tim123]

It doesn't apply to contractors; it applies to temps.

The only way that this cannot apply to contractors is if the Bank's currently can't reclaim the VAT element of a contractor's billing.

It certainly isn't the case that the Bank's will continue to be allowed to reclaim the VAT of contractor's billings, but not of temps.

Which of the above it is, I have no idea

Tim

[Sockpuppet]

I thought the banks can't currently reclaim the VAT on anything, something to do with not charging VAT.


Contractors are not covered by this, though it does depend on the work done and I would hazard a guess IR35 status etc.

Otherwise to trot out the plumber again any work done by a would not be vat reclaimable as he would be considered a temp.


I don't supply me, I supply services.


Actually this has just turned into a bit of a boon with plan B for me. Currently trucking to earn my keep while contract surfing and it means I can put my prices up by 10% and still undercut agys by going direct!

Boomed.

[NickNick]

But HMRC have been trying for years to claim that contractors and temps are the same thing.

I once heard a very good put down to a smarmy consultant by my other half.

He wasbrown nosing the boss at a works Xmas do and when the boss referred to him as a Consultant, he replied "no no no, I'm not a consultant. Conultants work in Hospitals, I'm a contractor"

SWMBO replied quick as a flash, "Nope, Contractors build houses, I see you as more of a temp."

He shut right up then.

[ASB]

I thought the banks can't currently reclaim the VAT on anything, something to do with not charging VAT.

There are some limited reclaims available since some of the activities are usually VATable