Working for banks and financial service providers
When working for a bank or a financial service provider it is more than likely that the type of work that you do and the level of your company turnover will require your company to be registered for VAT.
However, the banks and financial service providers do not provide taxable supplies for the purposes of VAT, in other words, the nature of the services and products they provide are exempt for UK VAT. For this reason they will not be able to reclaim the VAT on the purchases that they make and this can make them a little reluctant when it comes to paying for VATable items.
You need to be aware of this when invoicing your client as you will need to add VAT to your expenses. You are unlikely to experience any problems with the client paying your expenses with VAT but if you make an error on your first submissions and forget to add the VAT, experience tells us that it can be very difficult to recover it at a later date.
Providing financial services
If the services that your company intends to provide fall within the category of providing financial services and products, or providing intermediary services between clients and financial service providers, then it is likely that your company will be exempt from VAT and will not need to register for VAT.
VAT is a complex and detailed area of UK tax so please do get in touch before making any decisions in this area.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Williams, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.