Where does the VAT come from??

**m0n1k3r** · 12 April 2018, 11:47

Originally posted by Sambola View Post

I've just started as a contractor and just received my first invoice (Well my Ltd company has) and I've noticed that my week's work as well as VAT has been charged to my Ltd company. My question is, how is my Ltd company supposed to pay for my services AND the VAT when it’s only received the money for my services???
I should also say that I got this position through an agency to which the invoice is addressed. Should I send it to them?

Not sure I understand. The client/agency is charging you for working for them? It is usually the other way around.

**Lance** · 12 April 2018, 11:50

eh?????

You do work.
Your company invoices the agency.

Someone does work for your company. They invoice your company.

An invoice is a 'bill' for work done.

Sorry to sound patronising but your post seems very confused about who does what for who.

Have you got an accountant? If not get one.

**BackupBoy** · 12 April 2018, 11:59

Your limited company doesn’t pay for your services. You invoice your client company (usually via your agency) for those services and they pay you.

Are you perhaps confusing this “invoice” with a remittance statement?

**Sambola** · 12 April 2018, 12:05

The way I've been told by my accountant is that I obviously pay myself from my Ltd company. But who pays for this VAT?

**SueEllen** · 12 April 2018, 12:06

Originally posted by Sambola View Post

I've just started as a contractor and just received my first invoice (Well my Ltd company has) and I've noticed that my week's work as well as VAT has been charged to my Ltd company. My question is, how is my Ltd company supposed to pay for my services AND the VAT when it’s only received the money for my services???
I should also say that I got this position through an agency to which the invoice is addressed. Should I send it to them?

First thing for you to do is read the First Timers guide under CUK Navigation on the right --> then work your way down the links.

After that there are helpful guides by organisations such as IPSE, and accountants like SDJ accountancy you can read to clarify your understanding.

Secondly engage an accountant. The accountant is not your financial advisor but they will help you work out wages, dividends etc though you need to have some clue about what you are talking about (hence read the guides first) before you ask them questions.

**MrButton** · 12 April 2018, 12:08

Where does the VAT come from??

There’s too many things wrong with this to even start answering without many back and forth replies.

Therefore I suggest you ask your accountant to clear everything up for you as you don’t appear to have any level of understanding how this works.

If you don’t have an accountant then get one.

Edit - so... what Sue said.

**NotAllThere** · 12 April 2018, 12:17

Originally posted by Sambola View Post

The way I've been told by my accountant is that I obviously pay myself from my Ltd company. But who pays for this VAT?

You have an accountant, you must ask your accountant to explain.

The knowledge gaps you're displaying are deep enough that I think you won't be able to understand the answers people might give you here. For that reason, I'm closing this thread.

Where does the VAT come from??