Paying VAT

dompatrick

Hi all,

My question is in regards to paying VAT. A colleague I sometimes work with owns his own video production company which is VAT registered. I recently hired him to work as a cameraman on a freelance bases.

He’s invoiced me through his company, but do I still need to pay VAT if I’ve hired him as an individual?

Thanks!

PasturesNew

Yes. You didn't hire him as an individual, you hired a "man who can perform a specific service, who does this for an income" and who is registered for VAT. When he bills you he has a legal duty to charge you VAT.

If you don't want to pay VAT you do it for "... and I'll buy you a pint next time we're up the club".

bengalknights

You have to pay the VAT as you went for his services via his company which is VAT registered so he has to charge you it

dompatrick

Thought as much but wasn't sure as I had hired him as an individual freelancer, so thanks guys for clearing that up for me!

agrinnall

I'd say that you should pay whatever he invoices you: if he does that through the company and charges VAT then you'll need to pay it, if he sends you an invoice as an individual rather then from the company and doesn't charge VAT then you won't pay it. I can't see how you would be in trouble if he decided to do the latter, although he may have questions to answer if HMRC looked into it.