The vast majority of contractors will be dealing with another business as an end client and VAT registration will not put either the contractor or the client out of pocket. The company collecting the VAT on your sales from your client in addition to your daily rate and passing the VAT element on to HMRC; if your client is also VAT registered they will claim the VAT back from HMRC and it has then gone full circle, with the net effect to both you and your client being nil.
So if the VAT goes full circle, what’s the point of it as a tax? Well, it exists to tax the end consumer, the individual at the end of the line who is buying the end product – as we all know to our cost whenever we buy goods and services personally.
There are rules in place that make it compulsory at certain times for a business to register for VAT and there are other times when it is actually beneficial to register for VAT voluntarily.
Why choose Integro Accounting?
Integro Accounting provide a fixed fee limited company accountancy service to contractors, freelancers and consultants. Integro accounting was founded on the word integrity. Clients rate us 5/5 on Google and we pride ourselves on building a completely transparent and personal relationship with our clients. For just £100 + VAT per month, you can have a partner integral to your contracting career.
- All-inclusive price – no hidden charges, one comprehensive package.
- A dedicated accountant – one person who will support you every step of the way.
- Unlimited face to face meetings – offices available across the UK.
- FREE award-winning accountancy software – a FreeAgent license provided to all clients.
- 24/7 access to your accounts – complete visibility of your accounts whenever and wherever you are.
Speak to one of our expert accountants today on 0207 0962659 or email firstname.lastname@example.org for more information on how we can help you.