I was contracting via an umbrella company. During this contract I had billable expenses in the form of hotel and food receipts and was charged VAT at POS for these. When the consultancy I was working via paid my invoice to the Umbrella company, the umbrella company deducted the VAT element of these expenses from my invoice payment - as the consultancy I was working for wasn't VAT registered. So in essence I paid the VAT to the hotels etc and then my umbrella company, who is VAT registered, took it from me as they have to pay VAT..... is this allowed?
Thanks
Thanks
Comment