VAT with a non-VAT registered middleman

pooch

InsideInsurance wrote: »

There is no markup/charges, its a straight pass through, the charges for the services are effectively an annual subscription paid up front which gives them access to "unlimited" use of the service


Spoke to a tax accountant the other day and their view was that the middleman can pay the net amount, the client can pay the supplier the VAT only and this would allow them to recover the VAT without needing to mess about with contracts/ accounts etc. The middleman can then bill for the net amount to the client.

Sounds a bit odd to me but have it in writing from them so

So getting the end user to pay the middleman the net amount and the original supplier the VAT amount is easier than the proposal I made almost 2 weeks ago?
(i.e. cut out the middleman and just get the end user to pay the suppier the full amount)

:huh:

InsideInsurance

pooch wrote: »

So getting the end user to pay the middleman the net amount and the original supplier the VAT amount is easier than the proposal I made almost 2 weeks ago?
(i.e. cut out the middleman and just get the end user to pay the suppier the full amount)

:huh:

Allegedly it is as the suppliers dont want/need contracts just for the VAT amount were as they would if the net amount was to be paid.

I just didnt think you could get one party to only pay the VAT element but that would allow them to recover it even if they havent paid the rest of it.

OhReally_2

InsideInsurance wrote: »

Allegedly it is as the suppliers dont want/need contracts just for the VAT amount were as they would if the net amount was to be paid.

I just didnt think you could get one party to only pay the VAT element but that would allow them to recover it even if they havent paid the rest of it.

If there is no contract in place between the supplier & the customer, then what obligation is there for the customer to pay the suppliers VAT? :huh:

Still, it's not for me to question the professional advice you have received.
If I were you, though, I would be checking out their insurance cover as I think it might be needed soon ;

longforgotten

When is a disbursement a disbursement ?:) that is the question etc etc


If it was me I would be checking with HMRC