Apologies this has been asked already, I used the search but couldn't find what I was looking for.
Background: I work in investment banking and was forced to take a PAYE contract earlier in the year. Just like everyone else, my rate has been reduced by the the employers cost of employment i.e. NIC and Levy.
In the ltd days, what happened to the VAT that I charged my employer? The VAT never was a consideration when negotiating a rate. Are the costs of the VAT claimed back by the employers somehow?
I spoke to a fellow contractor working in budgeting and he suggested that about 5% of the 20% can be recouped but wasn't sure how.
Thanks in advance for your help.
Background: I work in investment banking and was forced to take a PAYE contract earlier in the year. Just like everyone else, my rate has been reduced by the the employers cost of employment i.e. NIC and Levy.
In the ltd days, what happened to the VAT that I charged my employer? The VAT never was a consideration when negotiating a rate. Are the costs of the VAT claimed back by the employers somehow?
I spoke to a fellow contractor working in budgeting and he suggested that about 5% of the 20% can be recouped but wasn't sure how.
Thanks in advance for your help.
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